In terms of markets, the most important event of this week will be the Jackson Hole meeting.
The meeting, which is held every year in Jackson Hole, Wyoming, USA, is followed closely by the banking industry. The meeting, attended by the representatives of the central banks of developed and developing countries around the world, will be held on August 25 this year, that is, next Friday.
This meeting, where the changes in the monetary policies of the countries were discussed, is considered very important for the markets.
Fed Chairman Jerome Powell will also speak at the meeting. The messages of the FED chairman on the course of inflation, economic outlook and interest rate increases will be followed closely at the meeting, where other central bank governors are also present.
Inflation Has Dropped
When Powell spoke at the Jackson Hole meeting last year, Bitcoin was trading at $21500, while inflation in the US was 8.5% and interest rates were 2.5%.
Before this year’s Jackson Hole meeting, Bitcoin is $26000, inflation in the USA is 3.2% and interest rates are 5.5%.
What Did Powell Say Last Year?
Powell used the following statements at the meeting last year:
- The longer high inflation lasts, the more likely it is to become entrenched.
- The rate hike in September will depend on incoming data. Low July inflation data is not enough for the Fed to change its view.
- At some point, the Fed rate hike will slow down.
What Message Will Powell Deliver at the Jackson Hole Meeting?
Some growth data last week led to comments that the US economy is stronger than the expectations of the FED, which may increase the pressure on inflation.
Bank Of America analysts used the following statements regarding the Jackson Hole meeting in their latest investor note:
“Powell may carry less equilibrium policy in Jackson Hole as recent data increases risk of rising inflation”
JP Morgan analysts said they did not think Powell would give more clues about the direction of monetary policy.
“We don’t think there will be any more clues as to the direction of monetary policy at the Jackson Hole meeting. Powell is likely to say that policy will remain restrictive for as long as it takes to tighten the pressures of hyperinflation in the economy.”
What Time Will Powell’s Speech in Jackson Hole Begin?
Powell’s speech in Jackson Hole is expected to begin at 17:05 (UTC 14:05) on Friday.