Powell’s Jackson Hole Speech: Patience Urged Amidst Inflation Concerns

📌 On the previous Friday, Jerome Powell, the Chair of the Federal Reserve, delivered a speech during the annual economic policy conference held in Jackson Hole, Wyoming. The highly awaited address by Jerome Powell at the Jackson Hole symposium appeared to convey a clear message: Investors should exercise patience.

📌 During his speech in Jackson Hole, Jerome Powell, the Chair of the Federal Reserve, adopted a hawkish stance. He acknowledged that although inflation has decreased in recent months, it has not yet reached a satisfactory level. Powell emphasized that the central bank is ready to take necessary actions to lower the inflation rate to the targeted 2%. Powell stated on Friday that «While inflation has decreased from its peak, which is a positive development, it still remains elevated.»

📌 Despite the expectations of a cautious Powell, the markets were prepared for an unwelcome surprise on Thursday. This resulted in stock market declines and an increase in Treasury yields.

Source: CNBC, Barron’s