What’s in focus for Aug. 24 – 28 on Politics, Economy, Covid and the FED
This week, the highest impact economic events will be the Republican National Conference starting on Monday, the August IFO survey for Germany on Tuesday, and the Federal Reserve Chair Jay Powell speaking at the Jackson Hole Symposium on Thursday. Powell’s speech, which will reveal the findings of the Fed’s long-running review on monetary policy, is expected to be the marquee event of the week. Powell is expected to guide inflation expectations higher while keeping nominal yields anchored, but traders will be keen to see how close they are to moving to a more defined forward guidance, and specifically the appetite to move sooner to average inflation targeting.