🗽Wall Street rebounds after Fed Powell's dovish remarks at Jackson Hole
Futures on Dow Jones Industrial Average gains during the Jerome Powell's speech at Jackson Hole economic symposium.
- Powell signals rising risk for US labour market
- Fed thinks that inflation effect from tariffs will be probably temporary
- Labour market is at risk now, while the risk of rising inflation seems to be lower
Traders increase bets on further monetary policy easing this year, fully pricing in two Fed rate cuts by the year-end. Quite dovish tone from Powell seems to be a surprise for Wall Street. Market prices in 90% chance for September rate cut vs 75% before the Powell speech. Indices on Wall Street rise, with US2000 gaining almost 3%, US500 and US100 gain 1.3% and 1.5% respectively.
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Futures on DJIA reach new all-time high level today.
Source: xStation5
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