20 Aug 2013
Bernanke-less Jackson Hole lowers risk of market volatility
FXstreet.com (New York) - Central bankers from around the globe congregate later this week in Jackson Hole, Wyoming, however the notable absence of Federal Reserve chairman Ben Bernanke means the annual get-symposium is not likely to roil equity markets.
Fed chief Ben Bernanke declined his annual invitation, breaking a 25-year tradition, and Fed Vice Chair Janet Yellen - a top contender to replace Bernanke in January 2014 - will only be moderating a panel. Consequently, there is no keynote Fed speech to open the conference, and the chances of a deliberate effort to signal an upcoming change in U.S. monetary policy have been lowered substantially.
In years past, Bernanke has used the venue to prepare financial markets for shifts in the Fed's policy stance. "In the past, the news that has come out of Jackson Hole has been because the principle presenters are in a position of policy prominence, and it seems to be lighter ... this year," said Carl Tannenbaum, chief economist at Northern Trust in Chicago.
Most economists and market participants expect the Fed to start scaling back monthly bond purchases at its meeting next month, but as opposed to getting a steer from a speaker in Wyoming, they will have to rely on the minutes of the central bank's July meeting - due to be released on Wednesday - to fine tune expectations.”
Fed chief Ben Bernanke declined his annual invitation, breaking a 25-year tradition, and Fed Vice Chair Janet Yellen - a top contender to replace Bernanke in January 2014 - will only be moderating a panel. Consequently, there is no keynote Fed speech to open the conference, and the chances of a deliberate effort to signal an upcoming change in U.S. monetary policy have been lowered substantially.
In years past, Bernanke has used the venue to prepare financial markets for shifts in the Fed's policy stance. "In the past, the news that has come out of Jackson Hole has been because the principle presenters are in a position of policy prominence, and it seems to be lighter ... this year," said Carl Tannenbaum, chief economist at Northern Trust in Chicago.
Most economists and market participants expect the Fed to start scaling back monthly bond purchases at its meeting next month, but as opposed to getting a steer from a speaker in Wyoming, they will have to rely on the minutes of the central bank's July meeting - due to be released on Wednesday - to fine tune expectations.”