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Dovish Powell not necessarily good news for stocks

Fed Chair Powell’s dovish keynote speech at the Jackson Hole conference today has reinforced the sense that not only are FOMC rate cuts imminent, but they may also be front-loaded. That suggests downside risks to our forecasts for US Treasury yields and the dollar; and while we remain optimistic about the outlook for equity markets, a further dovish shift from FOMC could prove something of a mixed blessing for them.

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