{"id":2023,"date":"2025-10-21T17:29:55","date_gmt":"2025-10-21T21:29:55","guid":{"rendered":"https:\/\/garandgestionprivee.ca\/august-2022-jackson-hole-speech-reverses-the-trend-of-the-markets\/"},"modified":"2026-04-03T10:41:54","modified_gmt":"2026-04-03T14:41:54","slug":"august-2022-jackson-hole-speech-reverses-the-trend-of-the-markets","status":"publish","type":"post","link":"https:\/\/garandgestionprivee.ca\/en\/august-2022-jackson-hole-speech-reverses-the-trend-of-the-markets\/","title":{"rendered":"August 2022: Jackson Hole speech reverses the trend of the markets"},"content":{"rendered":"
Jackson Hole, a valley in Teton County, Wyoming with a population of 23,356 people (2020) that is also the richest county in the United States according to 2019 data (yes, ahead of Manhattan!). What is its significance in an August 2022 financial markets commentary? It is actually very large.<\/div>\n
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The month of August having begun well; continuing the trend that began around mid-June. The tide finally turned at the end of the month during the speech of Jerome Powell, the chairman of the board of the US central bank (FED), at the annual symposium on economic policies in Jackson Hole. The Fed is the institution that dictates, among other things, decisions on interest rates and monetary policies in the United States. During his speech, Powell mentioned that the U.S. will need tight monetary policy for some time before inflation is under control; This could result in lower growth, a weaker labour market and some difficulties for households and businesses.<\/p>\n

Nothing very surprising here, you might say, but as I mentioned in my July commentary, the rise in the markets during the month was partly due to interest rates that had fallen in anticipation of a pivot by the Fed in terms of interest rates. However, Powell’s comment went against this trend by suggesting higher interest rates for longer. This comment caused interest rates to rise sharply and stocks and bonds to fall in tandem. A scenario that we are unfortunately all too familiar with this year. Although North American markets had been positive since the beginning of the month before his speech on August 26, they will finally all have ended in the red for the entire month.<\/p>\n

And now, what can we expect next?<\/u><\/strong><\/p>\n

At the risk of getting bored by repeating the same story, you already know the risks to watch out for in the coming months. Inflation, interest rates and the economy remain the hot spots that will impact the markets the most in the coming months. There is still a lot of risk to the markets right now and the very strong rally between mid-June and mid-August was very fast, probably a little too fast.<\/p>\n