The Federal Reserve's Jackson Hole Symposium
Powell's Speech on Price Stability and Monetary Policy
Key Points
- Federal Reserve Chair Jerome Powell spoke at the Kansas City Fed's annual conference in Jackson Hole, Wyoming.
- Powell emphasized the Federal Reserve's commitment to price stability and bringing inflation back to its target of 2%.
- Powell outlined three structural shifts in the global economy that are constraining monetary policy:
- The aging of the population in advanced economies
- The rise of China and other emerging market economies
- Technological advancements
- Powell argued that these shifts are making it more difficult for central banks to achieve their inflation targets without causing recessions.
- Powell said that the Federal Reserve is committed to using its tools to bring inflation back to its target, but that it will need to be patient and flexible.
- Powell's speech was closely watched by financial markets, as investors are looking for clues about the future path of interest rates.
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