Fed chair delivers a hawkish speech, vowing to get inflation down but at “unfortunate costs”
Source: www.tradingview.com
In his Jackson Hole delivery, Fed Chair Powell reiterated the central bank's commitment to controlling inflation. To this end, he admitted to "unfortunate costs" to economic activity and employment. But, he said, "Restoring price stability will likely require maintaining a restrictive policy stance for some time."
The Fed's preferred measure of inflation, the PCE, came in at 4.6% y-o-y, lower than last month's annualised 4.7%. However, the Fed will need to see a moderation trend before being confident of declining inflation. In response, the 2-10s yield curve weakened and remains inverted (green square). The longer this condition carries, the greater the likelihood of a recession.
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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