What will central bankers say at this year’s Jackson Hole summit?
Central bankers from around the world will convene this week in Jackson Hole, Wyoming to discuss monetary policy as the global economy enters the 21st month of the coronavirus pandemic.
Of particular interest to market participants will be Federal Reserve chair Jay Powell’s speech and any clues he may offer about when the central bank may begin tapering its monthly purchases of $120bn of government debt. Minutes from the Fed’s July meeting showed disagreement among officials, though a majority believe the taper could begin later this year.
“Jackson Hole becomes more important now with indecision from the Fed as to when they will taper,” said Andrew Brenner, head of international fixed income at NatAlliance Securities.
Other strategists say taper talk will not be the only focus. HSBC’s Steven Major argues that a discussion of income inequality could also potentially have an effect on bond yields. Economic inequality “is one of the longer-run structural drivers that has contributed to rates…
