Ryan posted up the summary of the pertinent comments fro Jackson Hold over the weekend.
- Jackson Hole central bank roundup
I found a couple of snippets that I thought were relevant from some of the indie bands at the gig central bankers not so much in the spotlight:
So, what to make of it all?
Bloomberg have a recap, and they've concluded:
... looking through low inflation ... brushing aside financial market turmoil, U.S. policy makers at the Kansas City Federal Reserve's annual retreat in Jackson Hole, Wyoming, had a largely consistent message: We're staying the course.
They cite Federal Reserve Vice Chairman Stanley Fischer, and he expects inflation to rise towards the 2% target:
"There is good reason to believe that inflation will move higher as the forces holding down inflation dissipate further"
But, of course ... we didn't get a straight answer on when the hike is coming. Bolding is mine:
Fischer was careful to announce that he wasn't signaling an impending rate increase, the remarks suggested a move wasn't ruled out (on) ... September 16-17
And, this assessment from Jonathan Wright (a professor at Johns Hopkins University & former Fed economist who attended Jackson Hole this year):
"It sounds to me as though in his heart of hearts, he would like to tighten in September. But others on the committee are more hesitant, like Bill Dudley,"
In his "heart of hearts"? Doesn't sound like cold, rational economist speak. I guess emotion plays a role even in decisions at this level.