The Jackson Hole Symposium is coming up and everyone's ready for it
Investors will be closely watching the annual virtual gathering of the Fed Reserve's policy makers in the Jackson Hole Economic Policy Symposium.
The symposium will happen from Thursday to Saturday this week, which will likely take the focus of traders and investors as they have been waiting for months to get an update as to when the tapering of mortgage securities and Treasury purchases will happen. Currently, the setting is at $120 billion a month which started during the pandemic and it has been going on for more than a year now.
The virus has forced the economy in a crisis, resulting to the development of the current asset purchase program which is a key factor that keep the US equity market afloat throughout the pandemic era.
Now, while the economic recovery is underway, talks about changing, or more so, removing the policy had been more apparent in the recent meeting of the Fed officials which was of full display of the minutes of their meeting.
The meeting minutes of the Federal Reserve's meeting in July visibly shows that most policymakers agree that the economic recovery has progressed enough and that the tapering will soon happen. This was followed up by the officials signalling that the start of the tapering, its announcement is getting closer.
Although the Jackson Hole may serve as a springboard that the policymakers may use for the announcement, many pundits still believe that the tapering will not happen immediately as the central bank still has a few meetings scheduled in 2021 that was planned to further discuss the tapering.
For them, the Jackson Hole may cause a few ripples, especially that Fed Chair Jerome Powell mentioned before those further talks about tapering can be discussed once improvement on the labor market is observed, which was seen on the latest print of the Labor Department on the new jobless claims, which apparently hit an all-time pandemic era low.
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