Courtesy of our good friends at Livesquawk 25 Aug
Say HSBC:
The Jackson Hole Symposium will focus on evolving frameworks for the implementation of monetary policy. We expect that the discussions will be mostly technical and have little immediate market impact.
Financial markets will be focused instead on whether Fed Chair Janet Yellen will give any hints about the near-term outlook for Fed policy. In our view, she is likely to maintain a neutral stance, indicating that gradual increases in the federal funds rate would be appropriate if labour market conditions continue to improve and inflation moves closer to 2% as the FOMC expects.
However, unless she specifies a time-frame for the next rate hike, her comments are unlikely to change market expectations that the chances of a rate increase at the September FOMC meeting are relatively low.
Another bank pouring cold water over expectations from the Jackson Hole hoedown.
