Fed Chairman Powell set markets on fire Friday, finally accepting the need to cut rates, buckling under enormous pressure from President Trump. The speech was the keynote address to the Jackson Hole Central Banker Symposium and seemingly accepted economic conditions now demand rate cuts. It will not save his job, as ‘too late’ lives up to the Trump nickname, with his approach probably based on political ideology. The US Dollar tanked, with the EUR busting through 1.1700, while the GBP topped 1.3500.The falling reserve allowed some recovery of the commodity currencies, with the AUD heading back towards 0.6500, while the NZD regained 0.5850. This coming week will be dominated by global growth and inflation data, with the European lack of growth explaining the stunted inflation. US growth should be strong, while inflation is likely to confirm Powells ‘conversion’.
