The Day at a Glance | August 27 2021

The Top

*Jerome Powell is expected to comment on the future of the FED`s purchasing program in Jackson Hole.

*Mexico records a trade deficit worth 4,063 million dollars in July; imports (4.51%) grew more than exports (1.47%).

*Bostic (Atlanta FED) considers it reasonable for the withdrawal of stimuli to start as soon as October

*The US Supreme Court put an end to eviction moratoriums for families that aren`t able to pay rent.

*Economic indicators: Inflation (PCE) recorded 4.2% annual growth during July in the United States.

Economic environment

Powell in Jackson Hole. This morning (9:00 am Mexico City time), Chair of the Federal Reserve Jerome Powell will kick off the annual Jackson Hole Symposium, with a speech widely awaited by markets. Powell is expected to send a clear message regarding the future of the FED`s monetary policy, pointing out that the withdrawal of stimuli will begin in 2021. Markets expect the FED`s Chair to give guidance regarding the withdrawal of stimuli at the end of the year, which would signal the beginning of the end of the emergency programs implemented because of the pandemic. It`s speculated that Powell`s comments could reinforce the dollar`s strength at a global level and boost Treasury bills` yields. However, less of a defining speech – or one that shows a hesitant stance regarding the withdrawal of stimuli – could have the opposite effect since the risks posed by the virus`s spread maintain a highly uncertain environment concerning economic recovery. After Powell`s speech, the most relevant events regarding normalization will be next Friday`s employment report (Sep. 3rd), and the FED`s next monetary policy meeting, scheduled to take place September 21st and 22nd.