Meanwhile in markets, US Treasury yields are hovering around Friday’s highs ahead of the all-important speech by Fed Chair Powell at Jackson Hole later this week. Clearly, markets expect a relatively hawkish performance by Powell. A case in point is recent Fed-speak: regional Fed Bank Presidents have walked back Powell’s July FOMC press conference pivot. Recall that Powell basically shot down the Fed’s rate hike plans for 2023. Clearly, with just one better than expected CPI report paling in comparison with all those inflation misses month after month, Fed-speakers rather err on the side of tightening more.
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