InvestorQ : What is Jackson Hole summit and why does it matter to world markets?
Sam Eswaran made post

What is Jackson Hole summit and why does it matter to world markets?

Answer
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swati Bakhda answered.
1 year ago


Every year towards the end of August, the central bankers from some of the most powerful central banks like the US Fed, Bank of Japan, Bank of England, ECB and many such senior economists meet at Jackson Hole in Wyoming to chart out the path for the next year on the monetary front. This year the meeting has gained special importance coming in the aftermath of the trade war and the perceived slowdown in growth across most of the economies.

Fed chair, Jerome Powell is expected to make a case for aggressive cutting of rates and that could set the tone for most central banks to adopt an easy monetary policy. These four large central banks put together own nearly $13 trillion worth of securities and when to unwind this is also a major decision that could be hinted during the meeting. The markets are nervous because the central banks need to cut rates but there is little room for most of the central banks to cut rates since most of them are already at zero rate of interest. Global markets will be watching closely for the indications on the liquidity front and the rates front.