PRESS ROOM
Markets have largely received Jay Powell’s Jackson Hole speech as dovish
Friday 03rd September '21
There are three key implications of this. In the short-term the ‘everything rally’ – a situation when both equities and Treasuries continue to rise in lockstep may continue. Second, the Federal Reserve (Fed) is kicking the can down the road in providing markets with clear guidance on future policy. This creates the risk of policy driving market volatility down the road. Holding all-weather core exposures like quality may prove beneficial. Thirdly, with the Fed now focused on maximum employment, there is little sense of urgency from the central bank to bring inflation in check. Investors may want to consider how they are protecting their portfolios against inflation.