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August 2017

Federal Reserve Chair Yellen and European Central Bank President Draghi to speak at Jackson Hole conference

Published: Friday 25 August 2017

  • Federal Reserve Chair Yellen and European Central Bank President Draghi to speak at Jackson Hole conference 
  • US Durable Goods numbers awaited
By Mike Mistretta
The financial markets are generally holding their breath for speeches from Federal Reserve Chair, Janet Yellen, and European Central Bank (ECB) President, Mario Draghi, at the Jackson Hole Symposium. The occasion has been seen in recent years as a platform to launch monetary policy shifts. It was during his previous appearance at the US Federal Reserve’s symposium in Wyoming three years ago that the ECB president went out on a limb to lay the groundwork for quantitative easing (QE). But this time, neither Yellen nor Draghi is expected to deliver anything drastic regarding monetary policy, in the near term. At the same time, this could also be Yellen's last address at Jackson Hole, since it's uncertain whether she will be granted another term by US President Donald Trump after the current one expires in February. Yellen might make use of the speech on financial stability to lay down foundations for the future and leave some legacy from her term as Chair. Yellen is expected to speak at around 5:00pm today, while Draghi will be speaking at 8:00pm.

We had Federal Reserve speakers talking last night. Federal President for Kansas City, which hosts the symposium, sounded unconcerned with the slowdown in inflation and maintained her push for another rate hike later this year. George told reporters,"…while we haven't hit two percent, I'm reminded that two percent is a target over the long term, and in the context of a growing economy, of jobs being added, I don't think it's an issue that we should be particularly concerned about unless we see something change.”

And based on what she's seeing, there's still opportunity for another rate hike this year. On the other hand, Dallas Federal President, Rob Kaplan, sounded more cautious. He noted that "I'm not saying we won't act by the end of the year, but we have the ability to be patient.”

On the data front, German Gross Domestic Product (GDP) was in line with what was expected. This afternoon, we await Durable Goods numbers from the US, however the main focus will be on Jackson Hole and those speeches from central bank chiefs.

It’s a Bank Holiday in England, Northern Ireland and Wales on Monday, so it will be quiet on the data front, although the Pound could be moved by events elsewhere in the world, both before and after the break. Speak to your currency consultant if you are planning any international payments over the next few days.

Enjoy the Bank Holiday. We’re holding out for some end of summer sunshine…

Bank Holiday Opening Times

Monday 28th August 2017 – Closed
Tuesday 29th August 2017 – 08:30 – 20:00
Wednesday 30th August 2017 – Open as usual
Unfortunate Names
Batman Bin Suparman
MacDonald – Berger
Chris P. Bacon
Beezow Doo-Doo Zopittybop-Bop-Bop

Today's Major Economic Release

Market BST Data/Event Previous Expected
ALL Day Two Jackson Hole Symposium    
EUR 09:00 EU: German Ifo Business Climate  116.0 115.5
USD 13:30 US: Durable Goods Orders 6.4% -6.0%
USD 13:30 US: Core Durable Goods Orders 0.1% 0.4%
USD 17:00 Federal Reserve Chair Yellen Speaks    
EUR 20:00 European Central Bank President Draghi Speaks    

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