As we discussed heading into the meeting, the outcomes of Jackson Hole could not only significantly drive interest rate expectations, but also set the tone for markets generally for the remainder of the year, in our view. Key takeaways from the meeting related to US interest rate policy, and Fed Chair Janet Yellen was relatively neutral, stating that the case for rate hikes has “strengthened in recent months”, without explicitly discussing timing. Following Yellen’s remarks, Fed Vice Chair Fischer was more hawkish, as he alluded to the possibility of 2 hikes this year. ATM believe the September US Federal Reserve meeting is very much live, with the possibility of a rate hike next month. With the caveat that as always hikes will be data dependant, there is also a distinct chance of another hike in December as well, in our view. The key data point to watch will be this Friday’s employment data, as another strong jobs number might well lead to a hike in September....
Stock Markets, Simplified.