The Business Times
business-time-50
NEWS ANALYSIS
·
SUBSCRIBERS

Jackson Hole offers reassurance, suggests soft landing likely for US economy

google-preferred-sourceAdd BT as a preferred source
    • Jerome Powell (left), chairman of the US Federal Reserve; with Kazuo Ueda, governor of the Bank of Japan; and Christine Lagarde, president of the European Central Bank, at the Jackson Hole economic symposium. Powell has said the US central bank is prepared to raise interest rates if needed, and intends to keep borrowing costs high until inflation is on a convincing path towards the Fed's 2 per cent target.
    • Jerome Powell (left), chairman of the US Federal Reserve; with Kazuo Ueda, governor of the Bank of Japan; and Christine Lagarde, president of the European Central Bank, at the Jackson Hole economic symposium. Powell has said the US central bank is prepared to raise interest rates if needed, and intends to keep borrowing costs high until inflation is on a convincing path towards the Fed's 2 per cent target. PHOTO: BLOOMBERG

    DeeperDive is a beta AI feature. Refer to full articles for the facts.

    Rob Curran

    Published Mon, Aug 28, 2023 · 01:55 PM

    AT THE Jackson Hole central-banking confab on Friday (Aug 25), Federal Reserve chairman Jerome Powell hinted he may be done with interest-rate hikes.

    Powell did not make any explicit promises because, as he has observed in the past, the Fed can stoke the flames of inflation by merely talking about a halt in rate hikes.

    Any concrete guidance on a permanent halt would cause borrowing rates to fall pre-emptively, encouraging a bout of risk-taking that would reinflate bubbles in assets from oil to tech stocks to real estate.

    Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

    US Federal ReserveUS economyInterest ratesSpotlight

    Copyright SPH Media. All rights reserved.

    Reuse this contentFeedback

    TRENDING NOW

    Malaysia Madani, or Civil Malaysia, is Prime Minister Anwar Ibrahim's slogan encapsulating positive values (such as humanity and strong governance) that would shape policy direction. But the "corporate mafia" claims have now cast the spotlight on governance credibility.

    From 1MDB to ‘corporate mafia’: Is Malaysia facing a new governance test?

    The fourth Amity Circle retreat was hosted by Temasek Foundation from Apr 8 to 10 in Hanoi.

    Middle East-linked energy supply shocks put Asean Power Grid back in focus

    Chinese Foreign Minister Wang Yi stopped short of explicitly naming the US or Israel as aggressors, a telling omission from a country that otherwise speaks with little diplomatic timidity.

    Beijing’s calculated silence on the Iran war 

    DPM Gan Kim Yong said the question is not whether shocks will occur in future, but whether Singapore's systems are able to absorb them, and continue to function.

    DPM Gan warns of 3 structural shifts to the global system that will bring greater challenges – and opportunities

    Latest T-bills Treasury Bills Results & Interest NewsLatest SSB Singapore Savings Bonds NewsLatest COE Certificate of Entitlement News
    Latest Johor-Singapore SEZ NewsLatest BTO Build To Order & Sales of Balance NewsLatest STI Straits Times Index NewsLatest SGX Dividends, Share Price NewsLatest Bonds Market NewsLatest Singapore Stocks To Buy NewsLatest Singapore Economy News
    View More