This might point to investors getting a sense that the Fed can’t be ultra-dovish forever, though it seems doubtful Powell would change his tone tomorrow. This could translate into the Fed getting less focused on its longtime 2% inflation target and allowing inflation to run above 2% if it’s spent a long time below that. The idea is inflation would average out over time, though the Fed’s sure had a tough go just getting inflation to 2% in the first place. “We really ought to be getting inflation above 2% to show that it’s a symmetric objective,” Chicago Fed President Charles Evans told CNBC early this year, before the pandemic. Tomorrow we hear from Dollar Tree DLTR (DLTR) and Dollar General DG (DG), two companies that often do well during recessions.

Source: Forbes August 26, 2020 13:07 UTC