The 10-year Treasury yield is down by 2.9 bps as the market prepares for the Fed’s Jackson Hole meeting that begins on Thursday.
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Every year, central bankers and economists from around the world convene in Jackson Hole, Wyoming, to discuss central banking policies and other financial trends. The meeting is also used as an indicator of where the federal funds rate is headed.
Powell Speech in Focus as Inflation Fears Persist
Investors are closely watching for any signals from Fed Chair Jerome Powell when he speaks on the second day of the meeting. A rate cut is widely anticipated during the September 16-17 Federal Open Market Committee (FOMC) meeting, although the path that the Fed takes after that is less clear.
“Yields could see more increases if Powell’s tone points to a slower interest-rate cut pace,” said Exness strategist Inki Cho.
Meanwhile, recent economic data points, such as a higher-than-expected Producer Price Index (PPI), have revived fears of inflation. This could reduce the likelihood of a rate cut, as higher interest rates can help combat rising prices.
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