Market Briefing: Post-Powell Reaction Continues to Lift the Dollar
Risk-sensitive assets are tumbling and the trade-weighted dollar is pushing toward last month’s peak in the wake of Jerome Powell’s “higher for longer” message on Friday. In an elegantly brief and blunt speech at Jackson Hole, the Federal Reserve Chair said “restoring price stability will likely require maintaining a restrictive policy stance for some time,” warning this would “bring some pain to households and businesses,” while acknowledging that the “historical record cautions strongly against prematurely loosening policy”. After a summer slumber, bears are reawakening. Equity futures are pointing to another day of selling, the ten-year Treasury yield is nudging 3.1...