This Jackson Hole speech by Fed Chair Powell should be good for risk assets. He went out of his way to highlight that inflation doesn’t appear to be accelerating. This suggests that forward looking rate hikes after September may be less certain than many previously thought. We view the speech as his willingness to watch how the currency markets and data react after the likely Fed rate hike in September.
There is nothing in Powell’s speech that deters our very positive fundamental core thesis – the market moves with the direction of earnings, and that should remain positive for the foreseeable future.
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