*Federal Reserve Chairman Powell’s eagerly awaited speech at Jackson Hole began today as of 17:05. Regarding the messages conveyed:
– If appropriate, we are ready to further increase interest rates, we will proceed cautiously.
– We will decide on the next policy move based on data.
– The Fed is paying attention to signs that the economy is not cooling as expected.
– We need to see a decrease in non-housing service inflation.
– We need to be sufficiently confident that inflation will sustainably reach 2% before we consider lifting interest rates from their restrictive level.
– We are ready to increase interest rates further when it is appropriate.
– The two months of good data are just the beginning to build confidence in the inflation path.
– Signs that the labor market is not softening might require more action from the Fed. Bringing down inflation will also require a softer labor market.
-We see evidence that inflation has become more sensitive to the labor market.

*Additionally, we will also follow ECB President Lagarde’s speech at Jackson Hole at 22:00 CEST. Given the poor PMI data this week, Lagarde’s Jackson Hole speech could be important.
Furthermore, on Saturday at 19:35, Bank of Japan’s Ueda will speak. Important guidance regarding Japan’s monetary policy could be provided.