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Bonds Drop Alongside September Rate Cut Odds Ahead of Powell Speech
Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium on Friday, August 22 is the most important macro event of the week – and perhaps from now until the next Fed meeting on September 17. In the run-up to the remarks, traders have taken a decidedly more level-headed view: the odds of a 25-bps rate cut in September has plummeted from 100% last Thursday to just 74% today: Scant expectations of a 50-bps rate cut in September (5.7% chance at their peak last Thursday) have likewise been eliminated. What hasn’t changed is the fact that markets are still expecting Fed Chair Powell to ... (full story)