Time for the Fed doves to come back on earth? | MarketTalk: What’s up today? | Swissquote

US stock markets sold off yesterday, as investors trimmed their long positions walking into Federal Reserve (Fed) Chair Jerome Powell’s Jackson Hole speech due later today – where he is expected to douse the jumbo rate cut expectations. US yields and the dollar rebounded, equities fell. There is more room for correction as the swap markets still price in 95bp cut from the Fed, and this pricing looks overstretched. We are all holding our breath into Powell’s speech. What has been a calm week could see a last minute volatility. Powell will probably not show up with a game-changing speech today, but his words should temper overpriced cut expectations. If that’s the case, we shall see the US dollar rebound from oversold levels, yet appetite in stocks could remain intact with prospects of lower rates into the year end. Listen to find out more!