US Fed Chairman moves markets

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Week Ahead 

This week, a speech by Jerome Powell, the chairman of the US Federal Reserve, triggered strong price swings in financial markets. The US equity market rose massively, US Treasury yields fell and the dollar weakened against the euro. The reason for this was a formulation that the current key interest rate was just below the broad range of estimates for the neutral interest rate. The markets interpreted this as a signal that interest rate hikes were coming to an end and responded accordingly.