Making the events scheduled for Friday sound interesting is like making a silk purse out of the proverbial sow’s ear.
Unlikely as it seems, therefore, we have to give thanks to small mercies and the enduring bore-fest that is the Jackson Hole symposium of central bankers.
“Meeting virtually instead of within the confines of Jackson Hole Resort in Wyoming’s stunning Grand Teton Mountains, officials are expected to provide carefully modulated guidance to the central bank’s changing policy,” said Joseph Trevisani of FXStreet.
“The Fed chairman’s speech is usually the highlight of the symposium and has, in the past, been used to make important points about the evolution of policy. The question before the market is whether Chair Jerome Powell, who has been one of the most cautious members about a change in policy, will use his speech on Friday to present the case for withdrawing monetary accommodation. It is certain that he will not announce any policy changes. Except in emergencies policy changes are restricted to scheduled meetings, but a positive assessment of the US economy will go a long way to convincing markets that the taper, or its schedule, will be announced at the September 21-21 FOMC meeting,” Trevisani.
Significant announcements expected
Economic data: US personal income/ spending