Federal Reserve officials will meet this Thursday and Friday at the Jackson Hole world event for this year’s economic symposium. This type of event has been used on previous occasions to signal important policy changes.
Plans for a gradual reduction of stimuli are expected to be laid out at the Jackson Hole meeting. The exchange will be dominated by discussions about how and when to withdraw the emergency stimulus and we will be able to have more accurate information on the decision made by Fed officials.
In the July FOMC minutes, it was possible to identify that there were officials in charge of making the decision, who were that the reduction should begin soon. However, officials have not yet agreed on the timing and pace of asset purchases.
This is the big question: Withdraw stimuli without implying adverse effects.
Taking this into account, the new ravages caused by the rise in covid cases and the circulation of the new variant, pressure on the moment to determine it, so that an early withdrawal does not imply, causing negative economic effects.
Fed President Jerome Powell will make his comments virtually via the Kansas City Fed YouTube channel on Friday, August 27. It will consider how close it is to meeting the inflation and unemployment targets set by the Fed.
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