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Powell Heaps Pressure on Risk Sentiment as More Catalysts Loom

  • Fed chair rebuffed expectation of tempered monetary tightening
  • Asian stocks slump Monday tracking losses seen Friday in US
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Powell's Jackson Hole Speech: Short and Sweet
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The dog days of summer are firmly over as global investors absorb Federal Reserve Chair Jerome Powell’s stern message that interest rates are going higher for longer in a painful fight against inflation.

With further catalysts for volatility ahead -- from the shutting of the key Nord Stream gas pipeline to Europe for maintenance to a ramp up of the Fed’s balance sheet rundown to crucial US labor data -- caution is high after Friday’s post-Jackson Hole stock slide. That was sparked by Powell’s rebuttal of the notion that the trajectory of monetary tightening could soon be tempered.