FT News Briefing

All eyes on Jackson Hole

Aug 23, 2023

09:03

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Topics discussed include the highly anticipated speech by Federal Reserve Chair Jay Powell at Jackson Hole, the challenges of balancing interest rates and uncertain growth in the US and Chinese economies, and the surprise rate cut in China and its impact on bank profits.

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Quick takeaways

Market participants will be closely watching Federal Reserve Chair Jay Powell's speech at the Jackson Hole Economic Symposium for hints on the Fed's perspective and potential measures regarding growth, inflation, and interest rates.

Global equity markets have seen a decline of $3 trillion due to higher interest rates and concerns over the Chinese economy, with China taking a cautious approach to economic stimulus to mitigate long-term risks and potential inflation.

Deep dives

All Eyes on Jackson Hole Economic Symposium

The annual Jackson Hole Economic Symposium is being closely watched, especially Federal Reserve Chair Jay Powell's speech. With global growth slowing down, inflation still elevated, and concerns about banking stress, the Fed's monetary policy decisions have significant global implications. Powell will have to consider the impact of previous interest rate hikes, the potential resurgence of growth, and how to navigate these variables without over-committing the Fed in any one direction. Market participants will be looking for hints in Powell's speech to gauge the Fed's perspective on growth, inflation, and the possibility of additional measures.

Introduction

3min

Tension over Interest Rates and Uncertainty in US and Chinese Economy

3min

Surprise Rate Cut in China and the 2024 U.S. Presidential Election

3min

Markets are looking for signals from Federal Reserve chair Jerome Powell during this week’s Jackson Hole symposium, global stock markets have lost about $3tn in value this month and there has been a mixed reaction to China’s approach to monetary policy.

Mentioned in this podcast:

Central bankers to make ‘higher-for-longer’ rate pitch at Jackson Hole

Global stocks head for worst month in nearly a year

China’s rate caution shines light on $56tn banking system

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The FT News Briefing is produced by Fiona Symon, Sonja Hutson, Kasia Broussalian and Marc Filippino. Additional help from Josh Gabert-Doyon, Monique Mulima, Monica Lopez, Peter Barber, Michael Lello, David da Silva and Gavin Kallmann. Topher Forhecz is the FT’s executive producer. The FT’s global head of audio is Cheryl Brumley. The show’s theme song is by Metaphor Music.

Read a transcript of this episode on FT.com

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