The Jackson Hole Economic Symposium is an annual international conference hosted by the Federal Reserve Bank of Kansas City every August in Jackson Hole, Wyoming. Established 46 years ago, this three-day event gathers influential individuals from around the world to discuss central banking policies, economic trends, and global financial issues. 

The symposium serves as a platform for leading economists, policymakers, academics, and business leaders to share their insights, research, and expertise. These leaders often shape the future of economic policy and the global economy.

The symposium first took place in 1978 under the name “World Agricultural Trade”. In 1981 the event was renamed the Jackson Hole Economic Symposium and moved to its current location. 

This year’s symposium was held from August 24^th to 26^th on the theme of “Structural Shifts in the Global Economy.” The agenda for the event explored several key topics:

• Has the Macroeconomic Environment Impacted Long-Run Shifts in the Economy?
• Structural Changes in the Financial Markets and the Conduct of Monetary Policy
• Structural Restraints on Growth
• European and Global Economy
• Global Production Networks
• Global Financial Flows
• Globalization at an Inflection Point

Handouts and papers from the meeting agenda can be found here.

The most anticipated presenter of the meeting was Jerome Powell, Chair of the Federal Reserve who gave the keynote address.

In his keynote he reiterated that the Fed has a goal to bring down inflation to 2%. He stated that despite their policies, inflation remains too high, and they are prepared to raise rates further if needed.

Inflation peaked at 7% in June 2022 and has declined to 3.3% as of July 2023.

Powell said that getting inflation down to their goal of 2% will likely “require a period of below-trend economic growth as well as some softening in labor market conditions.”

This year GDP has come in above expectations, and the economy may not be cooling as expected. He repeated that with additional evidence of above-trend growth the Federal Reserve would further tighten monetary policy.

Here is his closing statement:

“As is often the case, we are navigating by the stars under cloudy skies. In such circumstances, risk-management considerations are critical. At upcoming meetings, we will assess our progress based on the totality of the data and the evolving outlook and risks. Based on this assessment, we will proceed carefully as we decide whether to tighten further or, instead, to hold the policy rate constant and await further data. Restoring price stability is essential to achieving both sides of our dual mandate. We will need price stability to achieve a sustained period of strong labor market conditions that benefit all. We will keep at it until the job is done.”

Last month Fed officials raised the fed funds rate by 0.25% to a range between 5.25% and 5.5%, the highest rate in 22 years. Their next meeting is September 19^th – 20^th.

From Chairman Powell’s speech we can expect that there won’t be any rate cuts in the near future, and that the Fed will be looking at GDP trends and changes in the job market to guide decisions about another rate increase.

As always, we are here for you. Please email or call if you want to set up a Zoom videoconference meeting or talk by phone.

Ralph Broadwater, M.D., CFP®

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