CIO Insights Weekly Bulletin — 19 August 2016 Perspectives From Um Regions Asset Classes Forecasts Facts & Figures Glossary United States Deutsche Bank does not intend to promote a particular outcome to the US election due to take place in November. Readers should, of course, vote in the election as they personally see fit. Focus turns to Jackson Hole UNITED STATES Larry V Adam CIO and Chief Investment Strategist — WM Americas n, Equities The timing of the next Fed rate hike continues to be an elusive debate for investors. Earlier this week, there were a number of Fed speakers on the tape that fostered sentiment on both sides of the argument. San Francisco Fed President John Williams struck a dovish tone on Tuesday as his comments calling for central banks to raise their inflation targets in the midst of the current sluggish global growth environment drove the USD to near a two month low. In contrast, William Dudley sounded more hawkish as he acknowledged that he would not rule out two rate hikes this year (leaving a September rate hike on the table) and that markets may be too complacent with respect to future rate hikes. This potential complacency has been seen as equity markets continue to grind to all time highs, volatility remains non-existent and recent weakness in the USD despite continued QE from the European Central Bank (ECB), Bank of England (BoE) and Bank of Japan (BoJ). Investor complacency could also be seen through the market reaction to the release of the Minutes from the July Federal Open Market Committee (FOMC) meeting. Although the Minutes acknowledged that some Fed officials believed labor market conditions were at or close to those consistent with maximum employment" and that rate hikes might be "warranted soon," both equities and bonds rallied, while the USD sold off. Additionally, while this statement may be seen as slightly more upbeat on the economic outlook relative to recent FOMC statements, the probab