8/25/2023: JPow Said Rates Will Remain High
The Fed Chair Jerome Powell delivered his Jackson Hole address this morning. In essence, he said the rates need to remain high to fight inflation, which is not at the target rate of 2% yet. He is open to raise rates further if necessary but it will be data dependent. Basically, it’s the same “higher for longer” message. It does sound like the “Fed Put” era is over and the Fed won’t easily go back to ZIRP/QE unless some huge catastrophe strikes.