Jackson Hole becomes center of attention
On the day before the Federal Reserve meets in Jackson Hole, Wyoming for its annual meeting, the US Labor Department reported that applications for unemployment benefits remained stable. The data suggests that the unemployment rate likely will also remain unchanged.
The lack of positive movement will place further pressure on the Federal Reserve to take some action. While no policy prescriptions are expected from the meeting, all ears will be listening for any signs of potential action. And no one will be listening more than traders on Wall Street, but it is less certain as to how they will interpret and react to the speeches.
Financial Times columnist Garyn Davies offers some suggestions as to what the Fed could do, including doing nothing.
So, why is Jackson Hole the center of attention? The Associated Press gives the meeting, which has taken place since 1982, some historical perspective.