The commitment of central banks around the world to rein in inflation produced wavering returns in both equity and bond markets.
Jerome Powell, the Federal Reserve Chair, announced in a concise and pointed message for markets that the Fed will raise interest rates to fight inflation until it "gets the job done". Powell acknowledged that this process could bring some pain to the labor market and broader economy as well.
Despite the fact the economy has already recorded two consecutive quarters of negative GDP growth, some economic data in August was quite positive. This includes strong employment data and a potential peak in inflation.
Investors' eyes will be focused on inflation readings in the following months, as that will likely determine the path of the Fed going forward.
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