Danske Bank analysts note that in Powell’s much awaited Jackson Hole address he did not pre-commit to more easing as expected, which in other words means an unchanged Fed narrative.
Key Quotes
“He repeated the easing bias through “will act as appropriate to sustain the expansion”. We believe that in particular Powell addressed two very important items; 1) the worsening trade war (Powell referred to the period since the July FOMC meeting as ‘eventful’) 2) the global economy has shown more weakness since the July FOMC meeting.”
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