A number of Federal Reserve speakers made statements, with Jerome Powell indicating that the organisation "would proceed carefully" in deciding whether to raise interest rates once again.
Since July, the S&P 500 had its greatest week. Ten-year Treasury yields ranged about 4.2%. The value of the dollar barely changed. After Christine Lagarde stated that the European Central Bank would set borrowing costs as high as necessary and maintain them there for however long it takes to achieve the desired inflation rate, the euro struggled to gain traction.
Powell issued a warning that there is still a long way to go before the process of getting inflation back to its target level. In a speech delivered on Friday at the annual conference of the US central bank in Jackson Hole, Wyoming, the Fed's chairman also hinted that authorities could maintain rates in September as anticipated by markets.
Patrick Harker, president of the Fed Bank of Philadelphia, made it clear he preferred keeping rates at their current levels so that the impacts of cumulative tightening could be felt throughout the system. Comparable to raising interest rates too high, undertightening them would be "a greater blunder," according to Loretta Mester of Cleveland. Austan Goolsbee, president of the Fed Bank of Chicago, claimed that the Fed is already on the path to a soft landing.