Fed Chair Powell signaled perhaps more clearly than expected in his Jackson Hole speech on Friday that the Fed might cut rates in September, which triggered a rally in equities and fixed income and the sharpest daily drop in the dollar’s value in three months. “The effects of tariffs on consumer prices are now clearly visible”, Powell said, but only after emphasizing the downside risks to employment. With upside risks to inflation and downside risks to employment, policymakers face a challenging situation balancing their twin mandates. “Nonetheless, with policy in restrictive territory, the baseline outlook and the ... (full story)