Fed Chair Powell set a hawkish tone in his Jackson Hole presentation which started 4 minutes ago.
Of course equity markets had set themselves up for disappointment by thinking the Fed would ‘pause’ or slow down rate hikes based on a month or two of just slightly weaker economic news.
The S&P500 fell about 1% as Powell began speaking. Interest rates basically didn’t move.
I think the bottom line is the Fed will hike at 75 basis points in late September.
In the 10 minutes it took me to finish this the S&P500 has jumped–Powell’s speech is over (very short).