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Fed’s hawks tee up Jackson Hole for Powell
video Federal Reserve Chair Jerome Powell was in something of a no-win situation heading into this past weekend. Last week, the U.S. yield curve from two to 10 years inverted for the first time since 2007, putting a potential recession on the top of everyone’s minds. By the end of the trading day on Aug. 16, fed funds futures were pricing in more than 50 basis points of Fed interest-rate cuts by the end of October. In other words, traders were betting on either back-to-back quarter-point reductions in the coming two months or that central bankers would slash rates by a half-point in one fell swoop. The Fed, by ... (full story)