- World’s top central bankers gathering in Wyoming to discuss global economy
- Experts expect Fed’s Jerome Powell to signal cut in borrowing costs
- It comes after US economy thrown into turmoil amid recession fears
Keynote speech: Fed chairman Jerome Powell
The world’s financial markets will be on tenterhooks this week as top central bankers gather to discuss the global economy.
Officials from the US Federal Reserve, the Bank of England and the European Central Bank (ECB) will meet for the annual conference in Jackson Hole, Wyoming.
But all eyes will be on Fed chairman Jerome Powell when he delivers a speech on Friday about the US economic outlook.
Experts are expecting Powell to signal a cut in borrowing costs after the Federal Open Market Committee last month held its benchmark rate in a range of 5.25 per cent to 5.5 per cent.
The move put the US central bank at odds with the Bank of England, which decided to cut interest rates for the first time in more than four years to 5 per cent.
Ahead of the conference, Danni Hewson, AJ Bell head of financial analysis, said: ‘Investors are grappling with the implications of policy divergence and central bankers are finding themselves centre stage for reasons with which they may not feel entirely comfortable.’
‘Markets are likely to pay attention, especially as they continue to price in – and even bay for – rate cuts from the US Federal Reserve… Some investors may hang onto every word,’ she added.
Analysts at Barclays explained ‘the narrative for policy easing is building’ and focus will be on Powell to suggest what the Fed will do next.
It comes after the US economy was thrown into turmoil amid recession fears.
Figures unveiled at the start of this month found that American employers added just 114,000 jobs in July compared to forecasts of 185,000, and unemployment was the highest since October 2021.
That prompted a huge global sell-off as fears grew that the Fed left it too late to cut rates and achieve a ‘soft landing’ for the economy.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you
***
Read more at DailyMail.co.uk