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
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.