The minutes of the Federal Open Market Committee of the US released last Wednesday confirmed the hawkish outlook of the Federal Reserve and supported the press release of the chairman Jerome Powell a month ago that it was unlikely the US would cut interest rates further during the rest of the year.
Together with mounting negative sentiment around the Jackson Hole symposium in the US during the weekend, emerging market financial markets and currencies continued to contract. The Jackson Hole symposium in Wyoming was a strategic conference where US government officials, especially from the Federal Reserve, economists and bankers came together to debate the current economic climate and economic policy.
This year the theme was: “Challenges for Monetary Policy”.
Pressure is mounting on Powell in the light of fears of an economic downturn, volatile markets and criticism from US President Donald Trump.