A piece from Jon Hilsenrath in the Wall Street Journal says there is a new economic mess for the central bankers at Jackson Hole to address
Says:
- They confront a big disparity between the world's two largest economies, the U.S. and China.
- The U.S. has recovered enough from the last financial crisis that Fed officials have been preparing to raise interest rates to prevent overheating down the road.
- But China appears to have lost economic momentum, driving the People's Bank of China to cut rates and take other measures to boost growth.
- Markets have responded to these conflicting forces with turbulence, creating new uncertainties for policy makers about the economic outlook.
Hilsenrath adds an interesting image from former Fed Vice Chairman Alan Blinder:
- "If the markets are in anything close to the sort of tizzy they have been in the last few days, then the Fed will not throw a match into the fire"
Full article is here: Central Bankers to Confront Stock-Market Turmoil at Fed's Annual Retreat in Wyoming
H/t and thanks to a good friend ... you know who you are!
