CoinVoice recently learned that according to foreign media analysis, one of the main points of Fed Chairman Powell’s speech at Jackson Hole in August was that the Fed’s response is no longer focused solely on inflation, given the significant progress made on inflation. There are clear signs that employment has become a more important factor in determining policy. Since then, employment data has triggered greater cross-asset volatility in recent months.
However, with a decisive victory for Trump and, more importantly, a likely sweep for the Republicans, market sensitivity to inflation data could rise again. The prospect of protectionist policies through trade tariffs and expansionary fiscal policy could complicate the fight against inflation. Markets have repriced in a higher Fed terminal rate, raising it from 3.6% to 3.75%. [Original link]