Wall Street relieved Jerome Powell dropped no bombs in Jackson Hole, but how long can the optimism last?
The Street got no assurance of rate-cuts, or even a pause, from Jerome Powell at Jackson Hole on Friday. But for now, it seems to be happy that the Fed chair dropped no bombs like he did last year.
Powell, in his speech, warned that the US central bank is ready to take additional measures to curb inflation, including raising rates further until inflation comes in the target range of 2%.
Powell said the Fed believes its key rate is high enough to restrain the economy and cool growth, hiring and inflation. But he said it is hard to know how high borrowing costs have to be...
Since the June decision to pause rate hikes, inflation has continued to fall, although it remains above the Fed's long-term target of two per cent.
This week the chiefs of the US Federal Reserve, the European Central Bank, the Bank of England and the Bank of Japan met at the ECB Forum in Sintra, Portugal.