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23 Aug 2024

Powell Adds to Dollar Selling With Increased Emphasis on Employment Risks

In this morning’s opening comments at the Jackson Hole Economic Symposium, Federal Reserve chair Jerome Powell avoided clearly telegraphing an accelerated easing cadence in months ahead, but noted growing concern about job market risks, helping ratify market expectations for a rapid easing cadence in the months ahead. In a widely-anticipated acknowledgement of a more balanced outlook, he said officials would do “everything we can to support a strong labour market as we make further progress toward price stability”, warning that “the upside risks to inflation have diminished, and the downside risks to employment have increased”. “The labour market is no...

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Markets Wait to Exhale

Global risk appetite is improving, but trading liquidity remains thin ahead of this morning’s speech from Federal Reserve chair Jerome Powell at the Jackson Hole economic symposium. The dollar is retreating, the pound and euro are inching higher, Treasury yields are flat, and equity futures are pointing to gains at the North American open. Odds on a half-point rate cut at the central bank’s September meeting have fallen sharply from the early-August peak, but markets nonetheless expect Powell to deliver a distinctly dovish outlook, setting the stage for at least one outsized move in the autumn months by emphasising downside...

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