Wall Street Braces for ‘Reality Check’ From Powell: Markets Wrap
- Fed Chair set to deliver hotly anticipated speech on Friday
- US officials signal Fed to take slow and methodical approach
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Bond yields climbed and stocks got hit, with Wall Street traders betting Jerome Powell will throw cold water on market expectations for aggressive interest-rate cuts.
In the run-up to Powell’s Jackson Hole speech, Treasuries tumbled across the US curve, with the move led by shorter maturities. The dollar gained the most in over a month. The S&P 500 lost steam after getting close to its all-time high. Tech megacaps sold off. The swap market has cemented wagers the Federal Reserve will ease policy by about one percentage point this year.