Near-Term Equity Correction Likely As Fed Stands Firm On Inflation
Bringing down prices “is likely to require a sustained period of below-trend growth” and an increase in unemployment. This was the central point of U.S. Federal Reserve's Chairman Jerome Powell's Jackson Hole address. If this can not be termed as hawkish, I don't know what can be; the markets duly reacted. Comments such as those warranting jumbo-sized hikes or seeking elevated rates until inflation eases have the ammo to spook risk assets for days to come.