Market Commentary
The Merge Is Coming
The theme this week is that of reversals. The Jackson Hole speech by Powell is a masterclass of setting proper expectations. The tough rhetoric against inflation is a necessary component of combating inflation, which is largely driven by consumer expectations in the first place. The hope is that such language would be just as effective at staunching the flames of inflation as hiking rates. But maybe it has gone too far? What have we learned this week?
August 29, 2022
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