As I expected, Fed Chair Jerome Powell toed a dovish line in his Jackson Hole Symposium speech on Friday. Much of it simply echoed recent statements he has made in his Fed policy announcement press conferences. As a result, it was mostly a rehash of the same technocrat message that all is well and under control. If it weren’t, the Fed would play the role of economic handy man, equipped with its magic toolbox, to fix things in a jiffy.
The major market indexes of course took the dovish tone as nothing more or less than confirmation of the status quo. Certainly this contrasted to the recent comments of other Fed heads, including mostly non-voting members like Kaplan and Bullard. And the market rallied in response. The S&P 500 and NASDAQ Composite Indexes both ended the week in fresh all-time high price territory.