«Last year if you remember the markets were quite optimistic going into Jackson Hole but the Fed chair's speech was very hawkish and we had seen a major selloff post his speech because markets were very surprised by his hawkishness,» says Ajay Bagga, Market Expert.We will talk about the Jackson Hole Symposium then, are you expecting any key commentary coming in from the Fed chair and how do you expect this to pan out for the American markets and the spillover for our markets then?It is a strategy setting kind of a seminar. Last year if you remember the markets were quite optimistic going into Jackson Hole but the Fed chair's speech was very hawkish and we had seen a major selloff post his speech because markets were very surprised by his hawkishness.
This time around markets are going in with a lot of pessimism built in because the US economic numbers are coming through very strong. If you look at the Atlanta Fed GDPNow number that is showing an unprecedented 5.8% prediction of growth for US in the quarter three, 5.8% for an economy of the size of US that is unheard of kind of numbers, only in the post COVID recovery you could probably have seen a number like that because of the base effect.
So, a very strong US economy, pretty resilient US consumer and persistent inflation, these are the things he will talk about. Market has more or less factored in that there is a slight probability of a November rate hike, September does not look likely.
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