What the central bank meeting in Jackson Hole is regarding
Jerome Powell is set to deliver a critically acclaimed speech in Jackson Hole
© IMAGO / Xinhua
The world’s most important central bank governors meet in the US state of Wyoming. The focus is in particular on Fed Chair Jerome Powell – and a long-awaited speech
The annual meeting of the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming, opened with dinner on Thursday evening. For the first time since the outbreak of the corona pandemic in 2020, the conference will take place once more as a face-to-face event.
Fed Chair Jerome Powell will deliver a speech at 10 a.m. ET on Friday morning. And investors will be watching closely for any clues as to the pace of rate hikes ahead of their September 20-21 meeting. In the last two meetings, it had raised the key interest rate by 0.75 percentage points. A special feature: Powell’s remarks will be live-streamed from the lodge in Grand Teton National Park in Wyoming, giving viewers for the first time a glimpse of the conference room where the Fed has held its prestigious retreat since 1982.
Kansas City Fed President Esther George, who is hosting the conference for the last time before retiring this year, joked during her following-dinner speech that conference attendees should watch how fast they hike in the surrounding park. “Pay particular attention to the walking pace on the trails. Some hikers move slowly, others briskly,” she warned.
ECB President absent from Jackson Hole
She also gave the audience a solemn note: “This year’s theme is restrictions as central elements of the current political environment. Strong demand and insufficient supply have pushed up inflation around the world.”
In addition to Powell, Fed Vice Chair Lael Brainard and three other governors – Lisa Cook, Philip Jefferson and Chris Waller – will also attend, as well as all 12 regional Fed Presidents. Also present are Bank of Japan Governor Haruhiko Kuroda and Bank of England Governor Andrew Bailey.
The President of the European Central Bank, Christine Lagarde, did not travel, but ECB Executive Board member Isabel Schnabel will take part in an important discussion on Saturday. A number of other ECB officials, including the heads of the Bank of France and Deutsche Bundesbank, as well as policymakers from Africa, Latin America and elsewhere, are also taking part.
© 2022 Bloomberg L.P.
