- What Chair Jerome Powell will say in his speech on Fed monetary policy Friday is still unknown, but the potential for marketwide shock could be high. Stocks, bonds and commodities are moving in lockstep, the obsession with economic data and remarks by Fed officials have driven a measure of cross-asset correlation to almost double (the highest levels of the past 17 years).
- Heading into the Jackson Hole symposium, where Powell is expected to restate his...

The Fed officials reiterated Thursday that they will keep raising interest rates to restrain high inflation.
Volatility in financial markets also reflected spillovers from recent events in the UK – where the new government’s fiscal measures have seen the pound plummet – but made clear that these would not cause the Fed to pause its tightening campaign.
According to Cleveland Fed chief Loretta Mester, “real interest rates – judged by the expectations over...