Market Focus Shifts to Inflation, Long-term Yields, and Policy Framework Ahead of Jackson Hole

Bitget CFD's chief analyst Lewis Huang highlighted key market events to watch out for this week, including the release of US PCE data and the annual meeting of global central banks at Jackson Hole.

The market will closely monitor whether the Federal Reserve adjusts interest rates, as well as its stance on inflation remaining above 2% target, long-term bond yields, and fiscal pressures.

According to Huang, if core PCE exceeds expectations and the Fed signals a continuation of tightening or emphasizes anti-inflationary policies, US Treasury yields and the dollar may gain support, while gold and Nasdaq 100 could come under pressure.

Conversely, if inflation data cools down and officials express a willingness to preserve policy flexibility, markets might reassess opportunities for easing, potentially benefiting gold, non-US currencies, and growth stocks.