Jackson Hole History Points to Powell Sidestepping Market Shocks

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Jerome Powell News

Bloomberg,Options Traders,Basis Points

(Bloomberg) -- If Treasury and US stock markets are betting on one thing from Jerome Powell at the Jackson Hole symposium Friday, it’s this: He’ll play it...

-- If Treasury and US stock markets are betting on one thing from Jerome Powell at the Jackson Hole symposium Friday, it’s this: He’ll play it safe.It’s a critical moment for the Federal Reserve chair as he tries to navigate through a month that saw a gauge of equity volatility briefly spike to a generational high and bond traders going all in on bets that the US central bank is on the cusp of slashing interest rates.

“Jackson Hole speeches have not traditionally led to large yield moves,” JPMorgan strategists wrote on Aug. 16. “It is unlikely the Chair will offer too much granularity on the magnitude or pace of easing given the importance of the upcoming August employment report.” For equities, traders are preparing for a 0.9% move in the S&P 500, based on the cost of at-the-money put and call options, according to Citigroup Inc. That’s down slightly from over 1% a week ago.

Jeremy Clarkson’s girlfriend Lisa Hogan looks like the late Princess Diana in a picture on Instagram of the Clarkson Farm star wearing a sheep jumper - just like King Charles' former wife.A NATO airbase in Germany has raised its security level due to "a potential threat". All non-mission essential staff have been sent home from the base in Geilenkirchen in the west of the country, according to a spokesperson.

 

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