Special Guest Appearance by Mark Heppenstall This Week
This week’s Jackson Hole Economic Policy Symposium should provide investors with more clues on the Federal Reserve’s (Fed) plan to wind down its current $120 billion per month in bond purchases. The title of this year’s conference, “Macroeconomic Policy in an Uneven Economy,” highlights the challenges that Fed policymakers face as the COVID-19 pandemic continues to complicate the outlook for economic growth and inflation.
Fed Chair Powell’s speech this Friday takes on even more importance due to growing concerns around Powell’s leadership. Politicians on both sides of the aisle believe that President Biden should look for a new leader at the Fed after Powell’s four-year term ends in February. Investors who have benefited significantly from abundant liquidity fueled by the Fed’s easy money policies will be focused on any indication that tapering is on the horizon.
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