Jerome Powell’s Jackson Hole Economic Symposium Speech

by | Aug 27, 2021 | Wealth Management

pexels tatiana fet 1105766

By:  Thomas Steffanci, PhD, Senior Portfolio Manager

The stock market (1) has reacted bullishly today to Federal Reserve Chairman Jerome Powell’s prepared remarks at the Federal Reserve Bank of Kansas City’s Economic Policy Symposium in Jackson Hole, WY. It was his first public admission of where he stood on tapering that pushed stocks higher: “At the FOMC’s recent July meeting, I was of the view, as were most participants, that if the economy evolved broadly as anticipated, it could be appropriate to start reducing the pace of asset purchases this year.” Despite Powell reiterating his Federal Open Market Committee (FOMC) meeting comments, the speech comes away as especially dovish,  in saying it would be wrong to respond to temporary fluctuations in inflation and his repeated statement that “the timing and pace of the coming reduction in asset purchases will not be intended to carry a direct signal regarding the timing of an interest rate liftoff,”  added to the dovish tone.

It was a masterful performance from a Chairman whose FOMC committee members were split on the timing and speed of tapering. Without giving a specific timetable for tapering, he has bided his time to see more data on unemployment and inflation. He will get his first important data point in Thursday’s August payroll employment report.

  1. The S&P 500 is designed to be a leading indicator of U.S. equities and is commonly used as a proxy for the U.S. stock market.

Disclosure: BFSG does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to BFSG’s web site or blog or incorporated herein and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please see important disclosure information here.

Latest From The Blog

Archives

Our Services

Investment Management

Tailor portfolios to your needs and goals.

Retirement Planning

Investing and saving wisely is vital to success in retirement.

Financial Planning

Navigating the complexities of your financial affairs can be simplified.

Tax Management

Help to increase the amount you “take home”.

Estate Planning

Protect your loved ones and make sure your legacy endures.

Executive Compensation Analysis

Simplify the many options and decision points of executive compensation plans.

Education Planning

Confidently plan for your children’s future.

Charitable Giving

Give in a tax-smart, simple way.

*Please Note: Limitations.  The scope of services to be provided depends upon the terms of the engagement, and the specific requests and needs of the client. BFSG does not serve as an attorney, accountant, or insurance agent.  BFSG does not prepare legal documents or tax returns, nor does it sell insurance products.  Please Also Note: Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by BFSG) or any financial planning or consulting services, will be profitable, equal any historical performance level(s), or prove successful.

Sign Up For Our Newsletters

(They're great, we promise)

Connect With Us