Agency: Walsh ' s statement that the Eagle Market accepts short-term eagles for long-term stability

On 31 August, Sino-Kim reported that on the evening of 28 August, Beijing time, Federal Reserve Chairman Walsh delivered a keynote address at the Jackson Hole Global Central Bank annual meeting. On the whole, Walsh stated that he again emphasized the 2 per cent inflation target as measured by PCE and reaffirmed the Fed ' s responsibility to maintain price stability. The market also reacted to this by jumping interest rates in excess of 10 bp over two years, with the United States dollar rising, with gold falling by 3 per cent, and CME futures expected to increase interest rates from 35 per cent to 58 per cent in September. The hawks’ reaction, however, was not a panic wave, with limited US stock volatility, a 10-year high US debt rate of 4bp, and a 30-year fall in US debt, suggesting that the market accepted short-term hawks for long-term stability. Kim Xian