Upon reflection of the Jackson Hole speech, Jerome Powell spent 8 minutes reiterating the core stance that the Fed is determined on fighting inflation at the expense of investors. Powell does not want to be remembered as the modern-day Arthur Burns. Even though the FOMC has telegraphed this message plenty of times at previous meetings, the market reacted violently to this speech, seemingly caught off guard by the hawkish comments made by Powell.
So how should we think through the short to medium-term implications of this?
