Market Briefing: Dollar Steamrolls Rivals Ahead of Powell Speech
Global markets are bowing before the almighty dollar once more as investors brace for Friday’s central bank conference in Jackson Hole, Wyoming. Every major US equity index ended yesterday in the red, commodities are down again, and risk-sensitive currencies are in retreat. Markets think Mr. Powell will assert the Federal Reserve’s intent to lift rates into restrictive territory – and keep them at those levels – in Friday’s speech. Terminal Fed Funds expectations have shot up from 3.25 percent in late July to 3.75 percent now, and implied rate cuts have fallen by more than a third as investors have...