AUGUST 21, 2023 – FED’S ANNUAL JACKSON HOLE ECONOMIC SUMMIT THIS WEEK
Fed Chair Powell will speak about the Fed’s intentions at the annual Jackson Hole economic conference this week. Powell is expected to give his latest opinion whether more policy tightening will be needed to bring down inflation, or if it will be reasonable for the Fed to hold rates steady going forward.
It is expected the Fed will highlight their efforts of having brought inflation down from the peak over 9 percent to almost 3 percent now, and how this reversal took place while avoiding a recession. Unemployment has remained close to historical lows and GDP projections are trending up despite aggressive tightening. It is unlikely the Fed will lower rates quickly; they want to make sure inflation doesn’t rebound in the near term, having learned from the mistakes of the 1980’s when the premature loosening of monetary policy resulted in twin recessions.
The Fed’s next policy meeting takes place on September 19-20.