Futures slip ahead of Powell speech at Jackson Hole
- The Fed's annual economic policy symposium, known as Jackson Hole,
goes online this year for the first time since it began in 1978.
- The main event will be Chair Jerome Powell's keynote at 9:10 a.m. ET,
which will reveal conclusions of the central bank's review of its
monetary
policy framework.
- The Fed may be close to cementing a big shift in its philosophy, being
more lenient when it comes to inflation and allowing it to rise past the
2%
target (for periods of time) to keep the economy humming.
- While that's in contrast to its strategy for many years - which is to
pre-emptively raise interest rates to fight inflation - the Fed has
persistently undershot its inflation target since it was formally
established in 2012.
- U.S. equity futures are off 0.3% ahead of the big event, which could
also outline how long the Fed's near-zero interest rate environment might
last and assess the monetary policy response to the coronavirus pandemic.
- On the stimulus front, Republicans are reportedly considering a more
narrow COVID-19 relief bill as aid talks between the Trump administration
and Democrats are at a deadlock.
- Also on the radar today is a second reading of U.S. gross domestic
product for the second quarter and other growth statistics.
|Today, 5:40 AM|5 Comments
- The Fed's annual economic policy symposium, known as Jackson Hole,
goes online this year for the first time since it began in 1978.
- The main event will be Chair Jerome Powell's keynote at 9:10 a.m. ET,
which will reveal conclusions of the central bank's review of its
monetary
policy framework.
- The Fed may be close to cementing a big shift in its philosophy, being
more lenient when it comes to inflation and allowing it to rise past the
2%
target (for periods of time) to keep the economy humming.
- While that's in contrast to its strategy for many years - which is to
pre-emptively raise interest rates to fight inflation - the Fed has
persistently undershot its inflation target since it was formally
established in 2012.
- U.S. equity futures are off 0.3% ahead of the big event, which could
also outline how long the Fed's near-zero interest rate environment might
last and assess the monetary policy response to the coronavirus pandemic.
- On the stimulus front, Republicans are reportedly considering a more
narrow COVID-19 relief bill as aid talks between the Trump administration
and Democrats are at a deadlock.
- Also on the radar today is a second reading of U.S. gross domestic
product for the second quarter and other growth statistics.
|Today, 5:40 AM|5 Comments
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