At Jackson Hole, Powell ratifies path of interest rate hike to fight inflation. Although inflation has shown some decline since its peak, at this crucial event that brings together the leaders of the world's major central banks and is closely watched by the markets, Powell made it clear that the Fed is committed to containing inflation, which is "still at elevated levels", through a "restrictive" rate policy. As an immediate consequence, the market lifts real yields to around 15-year highs following Powell's speech in Jackson Hole Applications for unemployment benefits declined 230,000, indicating a tight labor market despite the Fed's interest rate hikes. The number of people receiving benefits after the first week of relief fell to 1.702 million, showing that some unemployed have stints out of work.
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