The Future of U.S. and Global Markets: Powell’s Influence and Dollar’s Decline
As Jerome Powell takes the stage at the Federal Reserve’s Jackson Hole event, all eyes are on his speech and its potential impact on the markets. The dollar is facing one of its worst weeks this year, with expectations for the Fed’s upcoming interest rate cut being tempered by Powell’s colleagues.
While U.S. business surveys for August exceeded expectations, the global economic surprise index is at its most negative since 2020. This suggests a downward trend for U.S. interest rates, with futures pricing in nearly 100 basis points of cuts this year.
Amidst market turbulence, Bank of Japan’s governor remains optimistic about rate rises in Japan, causing the dollar to slip against the yen. In the U.S., Treasury yields are holding steady ahead of Powell’s speech, and Wall Street futures are rebounding after a recent dip.
Looking ahead, Nvidia’s earnings report and Kamala Harris’s tax cut plan are key points of interest for investors. Overseas, Nestle’s CEO shakeup is causing market ripples.
Stay tuned for updates on U.S. new home sales, Powell’s speech, and other market-moving events later today.
