US inflation expectations, as per the 10-year breakeven inflation rate per the St. Louis Federal Reserve (FRED) data, rose for the sixth consecutive day at the latest as bulls prepare for Friday’s key Jackson Hole speech from Fed Chair Jerome Powell.

That said, the inflation precursor marched to 2.62% by the end of Wednesday’s North American session, after crossing July’s high on Friday.

The jump in the US inflation expectations could push Fed Chair Powell to sound hawkish as it stays well beyond the Fed's 2% target, not to forget the actual Consumer Price Index (CPI) data that is around 8.5% YoY at the latest.

“Jerome Powell's speech in Jackson Hole will be scrutinized for any indication that an economic slowdown might alter the Fed’s strategy,” mentioned Reuters. The update also mentioned that the US dollar could give back some gains on Friday if Powell expresses any concerns about the impact of the monetary tightening.

Also read: EUR/USD treads water around mid 0.9900s with eyes on Jackson Hole