- Volatility gripped the stock market as predictable remarks from Jerome Powell and his colleagues did little to change bets on another massive rate hike during the Federal Reserve's September meeting.
- The S&P 500 ended higher after fluctuating all day as the Fed's chairman reiterated his hawkish views from the Jackson Hole conference in August, saying officials are "dedicated" to fighting inflation. the yield on the policy-sensitive two-year note jumped as much as seven basis points to 3.5%. Swap traders have priced in a four-in-five chance that the Fed will raise interest rates by 75 basis points this month.
- Powell stated that the central bank will not relent in its efforts to reduce inflation "until the job is done." "We need to act now, forthrightly, and strongly," he said at a Cato Institute conference. "It is critical that inflation expectations remain anchored," Powell said, adding that "what we hope to achieve is a period of growth below trend, causing the labor market to rebalance."
