All Eyes on Jackson Hole

All Eyes on Jackson Hole

(8/25/22) All eyes are on Jackson Hole, WY, as global leaders converge on the financial symposium to plot the future of the world (!) Market pundits have been talking about a Fed "pivot" in policy since July, as reports emerged indicating inflation might have peaked; but Atlanta Fed President Raphael Bostic this morning commented that inflation may remain more persistent than expected, which could induce the Fed to continue hiking rates for longer than anticipated.

With the lagging properties of monetary policy, such rate moves might not show up in the economy for 8- to 12-months.

That heightens the risk of a Fed policy mistake of going too far on rate hikes.

As the markets digest economic data, there is the hope the Fed might lighten up a bit, but that's different from reversing rate policy.