Fed's Jackson Hole Symposium: What you need to know


Fox Business 26 August, 2021 - 06:31am 40 views

When does Powell speak at Jackson Hole?

Mr. Powell is set to speak on Friday at 10 a.m. ET as part of the Federal Reserve Bank of Kansas City's annual Jackson Hole economic symposium. The Wall Street JournalDerby’s Take: Economists Don’t Expect Powell Taper Announcement This Week

When is the Jackson Hole Economic Symposium 2021?

The Kansas City Fed announced it will host its 2021 Economic Policy Symposium, “Macroeconomic Policy in an Uneven Economy,” virtually on Friday, Aug. 27. The program's full agenda will be available at www.KansasCityFed.org at 7 p.m. CT/8 p.m. ET on Aug. 26. kansascityfed.orgJackson Hole Economic Symposium

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Oxbow Advisors managing partner Ted Oakley argues Federal Reserve Chairman Jerome Powell won't make 'drastic' moves during the Jackson Hole meeting.

The Federal Reserve Bank of Kansas City will hold its 45th annual Economic Policy Symposium virtually this year, as opposed to in its traditional Jackson Hole setting in Wyoming. The event will kick off on Friday, Aug. 27.

The Federal Reserve Bank of Kansas City has sponsored the symposium for more than three decades, focusing on important economic issues facing the U.S. and world economies.

FOX Business takes a deep dive into one of the most anticipated wonk fests of the year. 

The forum brings together central bankers, private economists, policymakers, academics, government officials and news media to discuss common issues and challenges relevant to today’s current market and political climate.

Important areas of discussion include monetary policy, agriculture, public policy and financial stability in global economies.

As the world continuously faces issues surrounding the coronavirus pandemic and the new delta variant, national security and defense, severe droughts, and agriculture supply issues, the Jackson Hole Symposium is even more relevant today than the founders could have ever imagined.  

Federal Reserve Chairman Jerome Powell will give what may be one the most anticipated speeches of his career, as he is expected to provide important clues on when policymakers will begin to dial back monetary policy stimulus, also known as "tapering." 

Powell’s remarks will be livestreamed at 10 a.m. EDT via the Kansas City Fed’s YouTube channel at External Linkwww.youtube.com/KansasCityFed. Invited attendees will participate in an online academic symposium following the speech.

This year's symposium is taking place at a time the S&P 500 and Nasdaq Composite are sitting at record highs, with the Dow Jones Industrial Average just shy of its own record mark. 

The president and CEO of the Federal Reserve of Kansas City, Esther L. George, oversees a workforce of over 2,000 employees who deal with these policy issues on a daily basis. 

The Kansas City Reserve oversees seven states - western Missouri, Kansas, Nebraska, Oklahoma, Colorado, Wyoming and northern New Mexico - that play a vital role in the national monetary policy, supervision of financial institutions, as well as providing payment and financial services to depository institutions and the U.S. Treasury in these areas.

Additionally, the Missouri native worked in the Tenth District’s banking supervision and discount window lending activities during the banking crisis of the 1980s and after 9/11.

The symposium typically takes place in the Jackson Lake Lodge, in Jackson Hole, which features beautiful views of Jackson Lake, as well as the Grand Tetons and Mount Moran.

Jackson Hole was originally named after Davey Jackson, a mountain man who was trapped in the area during the late 1800s. "Hole" was a term used to describe a high mountain valley back in the day.

The area is located near two National Parks, Yellowstone and Grand Teton. Created in 1872, Yellowstone was the world’s first national park. Grand Teton, created in 1929, had a huge expansion in 1950 due to the efforts of John D. Rockefeller.

The region is known for its outdoor activities in both summer and winter. In the summer, horseback riding, fishing, hiking, kayaking, canoeing, and wildlife tours are all extremely popular, while skiing, snowboarding and snowmobiling are the common winter activities.

Jackson Hole not only welcomes human visitors, but also sees an estimated 9,000 elk in the winter. Moose, bison, deer, as well as mountain lions, grizzly bears and the bald eagle also call Jackson Hole home.

In 1922, Eugene Amoretti built the Amoretti Inn for visitors to vacation and enjoy the region. Later, John D. Rockefeller and his family vacationed at the Inn, and in 1930 Rockefeller purchased the land where the Inn stood. 

In 1953 Rockefeller started construction on the current lodge, now known as Jackson Lake Lodge, which opened in June 1955. The project cost an estimated six million dollars to finish, featuring both traditional and modern styles with breathtaking views.

Interestingly, the lodge doesn’t have the usual accommodations, such as spas, gyms, and salons. It doesn’t even have television in the guest rooms.

Gaining a National Historic Landmark designation in 2003, the Lodge maintains its National Park setting and caters to outdoor enthusiasts, focusing on the area's natural beauty rather than the usual resort luxuries.

The symposium takes place in one of the most beautiful and historical regions in America, offering participants the opportunity to step away from day-to-day pressures and focus on collaborating in a natural, breathtaking setting.

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The pandemic-induced global slump is just part of a 20-year financial crisis

The Guardian 26 August, 2021 - 10:20am

Powell won’t reveal much and for good reason: he doesn’t have all that much to say. He is worried about inflation but there are also signs the US economy is slowing as coronavirus infection rates rise. The pace of recovery is moderating in the UK, Germany, China and pretty much everywhere else as well. There are shortages of materials and labour. In a world of lockdowns, quarantines and travel restrictions, it is proving harder to sustain a model built around frictionless movement of people, parts and finance. Global supply chains are under pressure.

It is too easy to dismiss these problems as temporary headwinds that will blow themselves out given time. A more sober assessment would be that the global economy is in the middle of a long crisis – as it was when the first Jackson Hole symposium was held – and there’s not a lot Powell et al can do about it.

Central banks have been chucking copious amounts of cheap money at the global economy for the past 12 years, and in one sense they have succeeded because there has been no repeat of the Great Depression of the 1930s. But nor has there been a full recovery to match that generated by the New Deal and military spending in the second world war. And that’s because the problems are deep-seated and structural rather than temporary and cyclical.

The strategy of central banks is not new but is now played out. They have been making it easy to borrow not just for the past 18 months but for the past 20 years. Many words have been written in the past couple of weeks about how the US’s long war in Afghanistan has ended in disaster and what initially looked like success was actually failure. Actually, the same assessment could be made of developments in the global economy, where the financial crash of 2008 and the pandemic-induced slump of 2020 are part of one long crisis stretching back two decades. In both cases, the cracks only really became apparent with time.

There were not even faint hints of what was to come when Alan Greenspan, then Fed chairman, delivered the opening address at Jackson Hole in August 2001. It was the high point of liberal technocracy, the end of a strong decade for the US economy. Under Bill Clinton’s presidency, unemployment was low, the budget deficit was eliminated, and the US took the lead in the new digital technologies. The country saw China as little threat, which was why the White House was happy to accede to Beijing’s application to join the World Trade Organization in that year. The sense that all the big problems had been solved was reflected in the theme of Jackson Hole: economic policy for the information economy. Less than two weeks later, 9/11 happened.

The terrorist attacks on the US led to a hasty reassessment of the assumptions made after the end of the cold war. Talk of how liberal democracy was the only game in town, and that the benefits of market economics would spread western prosperity and values to every corner of the globe, now rang a little hollow.

Even so, the willingness to deploy state power only applied to the military sphere. After 9/11 the White House was a lot keener on sending troops into Afghanistan or Iraq than it was on toughening up regulations on Wall Street. What remained of the New Deal attempts to curb excessive financial speculation had been removed by Clinton in the late 1990s. Low interest rates, inadequate supervision, a messianic belief that markets were never wrong and greed proved to be a toxic combination. Greenspan’s tenure at the Fed was essentially the story of one bubble after another, and it was left to others to clear up the mess when the biggest bubble of the lot popped in 2007.

That was the start of the economic equivalent of long Covid: not a full-on collapse but rather a debilitating and prolonged malaise that has prevented full recovery. The closest parallel from history is not the Great Depression of the 1930s but the long depression of the late 19th century, where more than two decades of mediocre economic performance began with a severe financial crisis in 1873. There was no great collapse in the global economy then either but, as today, productivity growth was weak, wages stagnated and there was a backlash against an earlier manifestation of globalisation. It is no coincidence that US populism had its origins in the 1890s.

Back then, the discipline imposed by the gold standard meant central banks had much less room for manoeuvre than they do today. Even so, the long depression eventually came to an end, for reasons that are relevant today.

The late 1890s also saw workers flex their muscles. Populism had a twin effect: it led to workers organising themselves into trade unions and it hastened the development of welfare states. Otto von Bismarck, Germany’s first chancellor, was a conservative but could see the sense of pensions for elderly people. Similarly, the industrialists of the late 19th and early 20th century understood that the people working for them were also consumers, and needed to earn enough to buy the goods they were producing. Antitrust laws were introduced to break up monopolies.

The lessons from this period seem obvious. Embrace the new technologies, but make sure they bring benefits to the many, not the few. Keep a close eye on the behaviour of the market power of big companies in all sectors, and clamp down hard on activity that stifles new entrants. Welcome rather than fear a rising share of national income for labour. Provide training and a suitably generous welfare safety net to encourage people to shift to growth industries.

Events of the past 18 months might just hasten the end of the long crisis. States have had no choice but to play a more active role in the running of their economies, labour shortages have resulted in higher wages and central banks are no longer seen as the answer to every problem. There’s still a long way to go, but if not now, when?

Larry Elliott is the Guardian’s economics editor

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