Federal Reserve Chair Jerome Powell on Friday did little to dissuade markets from the "higher for longer” mantra for rates that has driven up Treasury yields in recent weeks, leaving some investors looking for more cautious bets in case the economy is unable to escape a downturn next year.
Speaking at the Kansas City Fed's annual gathering in Jackson Hole, Wyoming, Powell left open the possibility of further rate increases and stressed the U.S. economy’s surprising strength, though he acknowledged declines in the pace of inflation over the past year.
While more balanced than the Fed chair’s ultrahawkish address at last year’s symposium at Jackson Hole, the speech nevertheless offered little solace to those hoping the central bank would nod toward eventual rate cuts in 2024.