Hi,

Janet Yellen's speech at the elite annual meeting Jackson Hole is probably one of the more widely anticipated speeches of Fed Chairwomen, but the real question is whether or not the Jackson Hole meeting is overrated or not. Taking in consideration the dull market condition faced so far maybe this catalyst can be the only hope for this market. A lot of the financial pundits speculate on the possibility that Janet Yellen will deliver and hawkish speech pointing to September rate hikes.

If you're asking me September is off the table as the Fed's funds rate are giving it a very low probability and the Fed has the tendency to announce big changes in monetary policy in December so that will be more appropriate date for the second rate hike since the great financial crisis of 2007-2008.

Here is what Deutsche Bank Fx Research Team has to say about the Jackson Hole event:
While we do not expect Yellen to explicitly pre-commit to raising interest rates at the September 20-21 FOMC meeting, she will no doubt want to retain the optionality of hiking next month if economic and financial conditions permit. [b]We anticipate that Yellen's speech will outline the rationale for taking another step in the policy normalization process, but will also discuss the broader ramifications of a potentially lower equilibrium real rate.[/b]

Best Regards,
Daytrader21
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