The Federal Reserve chairman will speak Friday at the central bank’s summer symposium in Jackson Hole, Wyoming. The irony could not be more pronounced.
This week, the world’s leading macroeconomists will gather at a playground of billionaires to discuss the post-pandemic problems of ordinary Americans while balancing the twin goals of seeking full employment and also constraining the forces of inflation.
The gathering at the Federal Reserve’s summer symposium in Jackson Hole, Wyoming, comes at an auspicious time for the central bank. After largely being seen as having missed the raging inflation that followed the global response to COVID-19, the Fed is now pondering whether to put a halt on its campaign of interest rate hikes even though inflation is still roughly 50% higher than its 2% annual target.
And for Fed Chairman Jerome Powell, it will be an opportunity to stake out his legacy in a volatile economic environment that is coinciding with a pivotal presidential election campaign marred by divisive partisan rhetoric. While the Fed likes to think of itself as apolitical, its actions have often been used by politicians for partisan advantage. As a Fed member who was nominated by Barack Obama, elevated to chairman by Republican Donald Trump and renominated by Joe Biden, the balancing act has not always been easy.
Abaigael Schlomski is an accomplished economist and financial journalist with over a decade of experience in the industry. He is a regular contributor to EconomicInform, where he provides in-depth analysis and expert commentary on the latest economic trends and events. With a keen understanding of the financial markets and a talent for breaking down complex economic concepts for a general audience, Maurice is a trusted and respected voice in the field.