Jackson Hole Conference will be Closely Watched
Beginning on Thursday, the Kansas City Federal Reserve Bank hosts its annual conference in Jackson Hole, Wyoming. The annual meeting draws central bankers from around the world, including Janet Yellen from the U.S. Federal Reserve (Fed) and Mario Draghi from the European Central Bank (ECB).
The meeting will be scrutinized for opinions on global economic growth and inflation expectations. With prices in the U.S. below the Fed’s expectations, Friday’s speech by Janet Yellen may yield new insights into the Fed’s view on upcoming monetary policy and the expected impact on inflation.
The other area of commentary on the agenda is the normalization of monetary policy by reducing the amount of quantitative easing in the system. Watch for potential surprises from the ECB on this front.
Another topic of speculation will be if Janet Yellen will be asked to serve a second term as Fed chair or if perceived front runner Gary Cohn will replace her.
Look for the volatility we saw pick up last week in stocks to continue.
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