QCAM: “The Powell Doctrine”

Fed Chairman Jerome Powell’s speech at Jackson Hole was widely viewed as dovish. The USD lost subse- quently 0.5% versus the EUR, while equity markets rallied and 10-year US Treasury yields inched lower.What inspired the market’s dovish read was Powell’s remark that “there does not seem to be an elevatedrisk of overheating”. In our view, the market’s read focuses too much on this one remark, which is taken out of context, and misses Powell’s general thinking on monetary policy making, which is much more rig- orous and in fact suggests that he is willing to lean more against the wind than his predecessors.

The full macro update is available at https://q-cam.com/wp-content/uploads/2018/08/QCAM-Macro-Update-27082018-EN.pdf

Related Posts

Previous Post
Should the US care if global markets move away from dollars for transactions?
Next Post
Iran Central Bank news wire reports cryptocurrency plans

Related Posts

Fill out this field
Fill out this field
Please enter a valid email address.

Menu
X

Reset Password

Create an Account