The market is falling t0 the lows following Fed Chief Jay Powell’s remarks at Jackson Hole. Powell’s message was clear this morning.  Pain for households and businesses are the price that must be paid to bring down inflation, but Powell stated that “a failure to restore price stability would mean far greater pain.”

Powell was hawkish, as inflation remains his top priority. This was a different tone from July when he dropped pieces of hope for the bulls. Regardless, markets faded minutes after his speech ended.

The Fed Fund futures now is pricing in a 56.6% chance of a 75bps hike in September.

All eleven sectors of the S&P 500 are lower with Technology the worst performer. Utilities are faring the best, but still down on the day.

On the economic front, Consumer Sentiment surprisingly bounced in the final August reading. The Index rose to 58.2 vs. 54.9 preliminary. 1-year inflation expectations fell to 4.8% from 5%, and the 5-10 year expectations fell to 2.9% from 3%.

Have a great weekend.