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Good morning. Traders turn focus to Jerome Powell at Jackson Hole, UK property buyers may be returning. And some big names are betting on more Japan rate hikes.
Wall Street is betting Federal Reserve Chair Jerome Powell will confirm that interest-rate cuts are coming at the central bank’s annual confab in Jackson Hole, Wyoming. But as the debate shifts from “will they or won’t they?” to “how big will they go?” — stock traders may be left wanting. Markets are fully expecting the Fed to begin reducing borrowing costs at its upcoming meeting in September, but Powell could easily remain tight-lipped about the timing of rate cuts when he speaks Friday. Meanwhile, Goldman Sachs economists lowered the probability of a US recession in the next year to 20% from 25%, citing the latest retail sales and jobless claims data. Still, easing concerns about inflation are not stopping a camp of investors quietly building up protection against the risk of a future spike in prices.