ECB and US 'higher for longer' rates mantra will test markets 

Jerome Powell said the Fed would raise rates further if appropriate, while Christine Lagarde held back from saying IF the ECB should lift interest rates for a 10th time

US Fed chairman Jerome Powell was speaking at the Kansas City Fed's annual conference in Jackson Hole, Wyoming, which is often used for major policy pronouncements. File picture: Manuel Balce Ceneta/AP 

Traders are girding for a volatile start to the week after US and European policymakers signalled that interest rates will likely stay higher for longer during their annual confab at Jackson Hole in the US.

US Federal Reserve chairman Jerome Powell indicated that the US could hike interest rates again, while investors are also absorbing China’s latest efforts to support its equities market.