POWELL: `WE WILL ACT AS APPROPRIATE TO SUSTAIN THE EXPANSION’

Comments from Fed Chairman Jerome Powell at Jackson Hole:

`WE WILL ACT AS APPROPRIATE TO SUSTAIN THE EXPANSION’

*POWELL: WE’VE SEEN FURTHER EVIDENCE OF A GLOBAL SLOWDOWN *POWELL SAYS INFLATION SEEMS TO BE MOVING CLOSER TO 2% GOAL *POWELL SAYS EVENTS SINCE THE JULY FOMC HAVE BEEN `EVENTFUL’ *POWELL: CAREFULLY WATCHING DEVELOPMENT FOR IMPACT ON U.S.

Market was watching the ‘mid-cycle adjustment’ which was not repeated. But the whole speech does imply a ‘mid-cycle adjustment’. He does explain the factors that drove a rate cut:

• Global growth slowdown
• Trade uncertainty
• Inflation

He is basically comfortable with the market pricing in rate cuts but will not go as far as to suggest a 50 bps rate cut in September.

Knee-jerk reaction subdued. – as expected. Until:

Gold still breaking out.