A Jackson Hole preview: Are expectations finally rational?

The Federal Reserve's annual Jackson Hole symposium is being held this week on August 25-27. Fed officials have fanned out across the land to deliver the message that market expectations of a dovish pivot are misplaced. The question for investors is, "Are market expectations finally rational?"

The CME's Fedwatch tool shows the market expects two consecutive 50 bps hikes in September and November, followed by a 25 bps hike and a plateau into mid-2023.

Is the market still misreading the Fed? How will Powell steer expectations?

The full post can be found here.