Jackson Hole May Disappoint Investors Primed for Stimulus - Bloomberg
Federal Reserve Chairman Ben S. Bernanke — returning this week to the
scene of a 2010 speech that foreshadowed a second round of quantitative
easing — probably will disappoint investors looking for him to signal
new stimulus.
Bernanke probably won’t use his Aug. 31 speech at the Fed’s annual
symposium in Jackson Hole, Wyoming, to suggest a third round of bond
buying is at hand, according to economists including Michael Feroli and
James O’Sullivan. Members of the Federal Open Market Committee — who
meet next on Sept. 12-13 — are closely monitoring unemployment and other
data and have been divided about whether to spur expansion. The U.S.
economy also remains beholden to political decisions made in Washington
and in Europe, which is struggling to contain its debt crisis.
“I don’t think Bernanke wants to make Jackson Hole into a
policy-signaling event,” preferring to “reserve that for the FOMC
meetings,” said Feroli, chief U.S. economist at JPMorgan Chase & Co.
(JPM) in New York.
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