U.S. economist and Nobel laureate Paul Krugman said Federal Reserve Chair Jerome Powell's speech at the Jackson Hole global central bankers' symposium was "utterly conventional" and did not signal aggressive policy changes, according to ETNet.

Powell reiterated last Friday that the Fed's goal remains to bring inflation back to 2%, a stance seen as hawkish and prompting markets to revive expectations of a September rate hike. Krugman said Powell did not hint at a rate cut or cater to U.S. President Donald Trump's calls for lower borrowing costs, instead returning to standard inflation measures and signalling a hawkish bias until price pressures clearly ease.

ABN AMRO investment director Christophe Boucher said Powell's remarks were not enough to convince him that policymakers will ultimately act. He said he is avoiding long-dated bonds because they are especially vulnerable if markets worry the Fed is failing to contain inflation. Boucher added that if Powell does not support a September rate hike and inflation remains sticky, concerns about the Fed's credibility could resurface.