There was nothing surprising in what Federal Reserve chairman Jerome Powell said in his long-anticipated Jackson Hole speech on Friday. In just eight minutes, without questions––barely more than a press release––he repeated that the Fed might have another large rate increase in September, and that they would not stop tightening until they had achieved their inflation goal. Powell was attempting to burnish the Fed’s inflation-fighting credentials which had got a little rusty after his comments following the Fed’s last rate increase. What was important was what was not discussed.
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