So far today, US equity futures were trying to erase yesterday's losses and were staying near their all-time highs. Gold, silver, and oil were also trading higher, while the FX market has shown only minimal movements during the London session. However, everything will surely change after the Jackson Hole speech.
Later in the day, Jerome Powell is scheduled to speak, and his remarks are expected to sketch a rough timeline for tapering the Fed's bond-buying program, also known as the quantitative easing. This would mark the beginning of the end for the central bank’s unprecedented monetary support in the wake of the coronavirus outbreak.
Volatility is expected to be extreme in the financial markets, especially if Powell surprises in a dovish/hawkish way.
Yesterday, Jim Bullard told CNBC that The Fed should "get going" on the taper and that he expects it to end its bond purchase scheme by Q1 2022. Bullard also added that "getting taper done early gives The Fed options on raising rates."
His words sent stocks and metals lower, but both assets managed to recover quickly. As already said, everything will be decided after today's Powell speech.