Today there are no trading signals due to the Jackson Hole Economic Policy Symposium.
Each year since 1978, the Federal Reserve Bank of Kansas City has sponsored a symposium on an important economic issue facing the U.S. and world economies. Symposium participants include prominent central bankers, finance ministers, academics, and financial market participants from around the world. The participants convene to discuss the economic issues, implications, and policy options pertaining to the symposium topic. The symposium proceedings include papers, commentary, and discussion.
Every August, investors around the world obsess over what’s going on in a tiny Wyoming resort on the edge of the magnificent Teton mountain range. They have good reason to do so.
Over the past two decades, central bankers have used the Federal Reserve Bank of Kansas City’s annual symposium in Jackson Hole to plot out and signal changes in monetary policy.
This year, the symposium has gained extra attention because of the current economic situation in the US and abroad. With global recession fears growing and bond yields tumbling, this week’s gathering is one of the most anticipated in years.
Investors and beyond are watching for signaling from Jerome Powell about what will happen at the Fed’s September meeting.
The US bond and stock markets largely expect that there will be another rate cut, the second since the Great Recession. But how much that cut will be, and if there will be more interest rate easing, is up for debate.
Powell has drawn a lot of ire from President Trump for failing, in Trump’s view, to cut rates as much and as swiftly as he wants. The president has attacked Powell in a number of tweets and is likely to continue his crusade against the Fed even after the Jackson Hole meeting.
Fed watchers expect Chairman Jerome Powell to suggest that the central bank is ready to reduce interest rates further.