If the Federal Reserve continues to raise rates and tighten monetary policy, U.S. equities will decline to new lows, said Phil Streible, Chief Market Strategist at Blue Line Futures.
Stocks have performed poorly this year, with the S&P down 12 percent year-to-date, despite a rally of 7 percent over the past month. Streible said that he would be watching for whether Powell signals hawkishness, using keywords like “cautious” or “data dependence.” If however, the Fed Chairman says “we are watching the economy,” then Powell might be “slightly dovish in his tone, and that’s what could accelerate risk assets.”Gold and Inflation Gold was up 0.58 percent on Thursday, apparently not reacting to anticipation of Powell’s Jackson Hole speech. The current spot price is $1,771.