Inflation Steps Back, Markets Move Forward

This week’s U.S. inflation data gave markets exactly what they were looking for: confirmation that monetary policy could remain on hold in the near term.

Jackson Hole: The Next Major Catalyst for Investors

U.S. inflation moderated as expected during the week of August 10–14, pushing major equity indices to new all-time highs. This reinforces the soft-landing narrative and reduces pressure on the Federal Reserve to act in the near term.

Beyond the U.S. border, the global picture offered important nuances. Europe showed resilience with solid second-quarter growth in both the U.K. and the Eurozone, while Asia continued to deliver mixed signals: Japan sees producer prices gradually easing, and China faces weak domestic demand despite moderating inflation. In Latin America, Brazil reported inflation within the central bank’s target range and solid consumer spending, while Mexico continues to navigate U.S. tariff pressure on its automotive sector, even as broader industrial activity surprised to the upside.

For investors, this week’s environment reinforces a risk-on posture, with equity markets leading the optimism. However, attention will need to shift to the Jackson Hole Symposium, where the Fed may deliver key signals about its monetary policy roadmap. Any tone more hawkish than expected could reverse some of the recent gains.

Monitor

Source: Macroeconomic data for the week of August 10–14, 2026.