𝐂𝐲𝐜𝐥𝐞 𝐑𝐞𝐯𝐞𝐫𝐬𝐚𝐥: 𝐅𝐞𝐝 𝐒𝐢𝐠𝐧𝐚𝐥𝐬 𝐑𝐚𝐭𝐞 𝐂𝐮𝐭𝐬 𝐒𝐭𝐚𝐫𝐭𝐢𝐧𝐠 𝐢𝐧 𝐒𝐞𝐩𝐭𝐞𝐦𝐛𝐞𝐫

●𝕋𝕙𝕖 𝕁𝕒𝕔𝕜𝕤𝕠𝕟 ℍ𝕠𝕝𝕖 𝕊𝕪𝕞𝕡𝕠𝕤𝕚𝕦𝕞

The Jackson Hole Symposium, held annually in Wyoming, United States, is a highly significant conference that brings together central bankers, economists, and key players in the global financial market. This year, the event attracted special attention from investors, not only due to the economic issues on the agenda but also because of the anticipation surrounding the speech of Jerome Powell, the Chairman of the Federal Reserve. Following the largest interest rate hike in the last 50 years, the market was eagerly awaiting the next steps in U.S. monetary policy.

● 𝕋𝕙𝕖 𝕓𝕖𝕘𝕚𝕟𝕟𝕚𝕟𝕘 𝕠𝕗 𝕒 𝕟𝕖𝕨 𝕡𝕙𝕒𝕤𝕖

Powell announced the beginning of a new phase: the reduction of interest rates in the United States, set to start in September. This cycle reversal, however, is not limited to the direction of the rates but also includes the pace of change. Powell indicated that the reductions could occur in increments of 0.25% or 0.50%, depending on the performance of economic indicators. He emphasized his comfort with the 2% inflation target, especially after a year in which the average inflation rate was 2.5%, and noted that with the recent decline in inflation, the Federal Reserve has room to ease its monetary policy.

● 𝔽𝕖𝕕𝕖𝕣𝕒𝕝 ℝ𝕖𝕤𝕖𝕣𝕧𝕖’𝕤 𝕕𝕦𝕒𝕝 𝕞𝕒𝕟𝕕𝕒𝕥𝕖

Another crucial point addressed was the Federal Reserve’s dual mandate, which, in addition to fighting inflation, aims to ensure full employment—a contrast to the European Central Bank. Powell warned that the U.S. labor market is showing signs of weakening but downplayed the risk that this would lead to inflationary pressures in the coming year. This assessment provides some relief to the market, but it also underscores the importance of upcoming employment data in determining the pace of interest rate reductions.

● 𝕄𝕒𝕣𝕜𝕖𝕥 ℝ𝕖𝕒𝕔𝕥𝕚𝕠𝕟

The cycle reversal was quickly reflected in financial markets. In Europe, stock exchanges rose, reaching the peak of August, reversing a negative start to the month. In the United States, the reaction was even more intense, especially among regional banks and small businesses. Regional banks, which had suffered due to the appreciation of U.S. Treasury bonds amid rising interest rates, now see their positions improve as rates begin to fall, leading to a 6% increase in the index of these banks. Small businesses also posted gains, with a 3% increase, while large corporations remained nearly stagnant.

● 𝕀𝕟𝕥𝕖𝕣𝕖𝕤𝕥 ℝ𝕒𝕥𝕖 𝕄𝕠𝕧𝕖𝕞𝕖𝕟𝕥𝕤

As for interest rates, the 10-year rates in Europe and Germany fell to around 2.25%, while in the United States, they remained stable at about 3.8%. Despite a challenging start in August, the outlook for the end of the month is positive, especially with the expectation of a more permanent reduction in U.S. interest rates, which could signal lasting relief for global financial markets.

---

💰 𝐂𝐨𝐩𝐲𝐓𝐫𝐚𝐝𝐞𝐫 💰

Consider starting to copy my investments if you are looking for a reliable investor to manage your investments. I show knowledge, discipline, and a long-term perspective with a strong strategy. My diversified approach and focus on risk management can provide steady growth prospects over time.

𝗦𝘁𝗮𝗿𝘁 𝗰𝗼𝗽𝘆𝗶𝗻𝗴 𝗺𝘆 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀 𝗻𝗼𝘄 𝗮𝗻𝗱 𝗲𝗻𝗷𝗼𝘆 𝘁𝗵𝗲 𝗮𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲𝘀 𝗼𝗳 𝘂𝘀𝗶𝗻𝗴 𝗮𝗻 𝗲𝗳𝗳𝗲𝗰𝘁𝗶𝘃𝗲 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆 𝘁𝗼 𝘀𝘂𝗰𝗰𝗲𝗲𝗱 𝗶𝗻 𝘁𝗵𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗺𝗮𝗿𝗸𝗲𝘁.

eToro link

📝 Feel free to 𝗹𝗲𝗮𝘃𝗲 𝘆𝗼𝘂𝗿 𝗰𝗼𝗺𝗺𝗲𝗻𝘁 and give it a thumbs-up! 👍

Sincerely,

𝓕𝓲𝓵𝓲𝓹𝓮 𝓟𝓮𝓻𝓮𝓲𝓻𝓪

Consistency is the key to success.

@eToroFilipePereira | pereira-investments.com

𝔻𝕚𝕤𝕔𝕝𝕒𝕚𝕞𝕖𝕣

𝑇ℎ𝑒 𝑖𝑛𝑓𝑜𝑟𝑚𝑎𝑡𝑖𝑜𝑛 𝑝𝑟𝑒𝑠𝑒𝑛𝑡𝑒𝑑 ℎ𝑒𝑟𝑒 𝑖𝑠 𝑛𝑜𝑡 𝑖𝑛𝑡𝑒𝑛𝑑𝑒𝑑 𝑡𝑜 𝑏𝑒 𝑓𝑖𝑛𝑎𝑛𝑐𝑖𝑎𝑙 𝑎𝑑𝑣𝑖𝑐𝑒.