The Fed’s pivot signals the start of a new market cycle

The Fed’s pivot signals the start of a new market cycle

At the Jackson Hole Symposium on Aug 23, US Federal Reserve chair Jerome Powell acknowledged what markets had long suspected: the labour market is softening, and a September rate cut is now widely expected. His dovish tone ignited a late-week surge across Wall Street, with the Dow closing at a record high and the S&P 500 and Nasdaq rallying nearly 2 per cent. Bond yields fell, and the US dollar slumped as traders priced in an 87.3 per cent chanc…