Senior Research Analyst Sebastian Orsi outlines the Federal Reserve’s updated monetary policy strategy which was announced last week, and what the implications are for investors.
- The major economic event this week was the Federal Reserve Conference at Jackson hole where Chairman Jerome Powell outlined the Federal Reserve’s dual mandate of tacking inflation and unemployment by allowing inflation to average 2% with short periods below and above the target. A key indicator of economic strength for the US this week will be the monthly job numbers as the initial jobless claim was over one million.
- Equity markets rose 2% this week as the S&P500 and NASDAQ are up 3% driven by tech stocks.
- Regarding Covid-19, the service industry is showing growth in China signaling hope for Western countries. However, European numbers of Covid-19 has risen as schools opened this week.