Goldman's Jackson Hole Prep Broken Down
This Year's theme is an opportunity to lay the blame for rate-hike lag of effect on Yellen’s drunken spending. We hope he opens the gift
Q&A on the Fed’s Jackson Hole Conference
Consolidated breakdown of the G.S. Q and A. No charts at all to think about. one table attached.
Key Moment:
The key event for markets is Chair Powell’s speech on the economic outlook at 10am New York time on Friday, August 23.
The Fed’s annual Jackson Hole conference kicks off this Thursday, with the main focus on "Reassessing the Effectiveness and Transmission of Monetary Policy." The highlight for markets is Fed Chair Jerome Powell's speech scheduled for Friday at 10 a.m. ET. Powell's remarks are expected to provide critical insights into the Fed's economic outlook. Following his speech, the conference will feature various research presentations, panel discussions, and speeches by other policymakers.
Q- What is their current Fed forecast?
Three 25 basis point rate cuts in a row for September, November, and December.
GS is forecasting three consecutive 25 basis point rate cuts in September, November, and December. The rise in the unemployment rate and other weaker labor market indicators justify this accelerated pace. They don’t foresee a 50 basis point cut unless August’s employment report comes in weaker than expected. Recent Fed official statements align with their view of a 25 basis point cut in September.