Hawkish messages are expected at the Jackson Hole meeting, where the managers of central banks will come together.
Stock markets are starting the week with a drop in anticipation of a hawkish message in Jackson Hole. The MSCI Asia Pacific Index fell 0.5 percent, while South Korea’s Kospi fell more than 1 percent. The Bloomberg Dollar Index is trading at a one-month high of 1,287. The U.S. 10-year Treasury yield is close to 3%.
The Jackson Hole meetings organized by the Kansas City Fed, which brings together central banks, will be held this week. Fed Chairman Jerome Powell’s speech, which investors eagerly await, will take place on Friday. The economists expect that Powell will make a hawkish speech to control inflation. However, Powell is not likely to point to the size of the rate hike at the September meeting.
