Gradually…and Then Suddenly
“The time has come for policy to adjust.”—Jerome Powell, August 23, 2024
Despite peak vacation season, August was a wild month in markets and delivered dramatic swings in valuations. The major catalysts behind market volatility were economic data and a central bank rhetoric that all but cemented the long-anticipated rate-cutting cycle. There have been numerous twists and turns as market narratives shifted in response to evolving economic data. However, the market now sees light at the end of the tunnel, and we have reached the beginning of the end of this policy cycle. So, as investors put away their sunscreen and return to their computer screens, we provide insight on what has changed and how to navigate this final chapter of the battle against inflation.
