The Jackson Hole Conference is a must-see event for investors
⚫ ︎ What is the Jackson Hole Economic Symposium (Jackson Hole Economic Symposium)
The Jackson Hole Conference is an economic symposium held every year in Jackson Hole, Wyoming, USA, where central bank governors, academics, and policy makers from around the world gather.
It has been hosted by the Kansas City Federal Reserve Bank since 1982, and is widely known as a place to discuss important issues in the global economy and monetary policy.
Statements and discussions here often have a major impact on global financial markets, and in particular, lectures given by the chairman of the US Federal Reserve (Fed) are attracting attention.
⚫ ︎ Impacts on monetary policy and stock markets
The Jackson Hole Conference is a place where central bank governors from various countries exchange opinions on current economic conditions and the direction of monetary policy, and statements made here are an important signal for the market.
For example, when the Fed chairman mentions interest rate prospects and quantitative easing policies, the market predicts the next trend in monetary policy, and this often has an immediate impact on the stock market, bond market, and exchange market.
In the stock market in particular, if monetary policy is accommodative, stock prices tend to rise, and if it is tight, stock prices tend to fall.
Therefore, investors' risk appetite and market volatility may fluctuate drastically depending on what was said at the Jackson Hole meeting.
The theme of the 2024 Jackson Hole Conference is “Reevaluating the Effectiveness and Transmission of Monetary Policy” (Reevaluating the Effectiveness and Transmission of Monetary Policy) of monetary policy.
The purpose of this theme is to re-examine how effective monetary policy is in the current economic environment and how it is affecting the economy as a whole.
In particular, at the 2024 meeting, attention is being paid to how the Federal Reserve (Federal Reserve) shows confidence in reaching the 2% inflation target while inflation remains a major concern.
Also, discussions will be held on the possibility that the direction of monetary policy will be directed towards lowering interest rates and stabilizing the labor market.
⚫ ︎ Key points unique to 2024
1. The sustainability of inflation
Global inflation will continue in 2024, and attention is being paid to how each country's central banks will respond to it.
The market is interested in whether the Federal Reserve and European Central Bank (ECB) show a strong stance aimed at controlling inflation.
2. The risk of a recession
There are signs of recession in some countries, and it is being discussed whether the Fed is likely to resume economic stimulus measures.
3. Coherence of global monetary policies
As geopolitical risks and the linkage between international financial markets are intensifying, the focus is on the extent to which central banks of each country will act in a coordinated manner.
In particular, discussions are expected about the impact of monetary policy trends in the United States, China, and Europe on the global economy as a whole.
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