US Fed chief Jerome Powell
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The Jackson Hole conference is scheduled to begin today. As our explainer detailed it yesterday, it sets the agenda for monetary policy announcements and shaped star economists.
Like Raghuram Rajan, for example. He “had questioned the financial market developments in 2005. Rajan was dubbed a ‘luddite’ then but had the last laugh as the 2008 financial crisis engulfed the world economy”, the piece said.
This year, market watchers are all agog to hear what Fed Chair Jay Powell will say about tapering of asset purchases.
However, as Madhavi Arora, economist at Emkay Financial Services, points out, the “decision about when to begin tapering rests with the FOMC (Fed Open Market Committee), not the Fed Chair”.
But that said, Powell can still provide answers to a lot of questions which will hint at what the Fed thinks about the strength and the pace of the recovery.
For instance, he could talk about how asset purchases are aiding the economy and through what channels. Fed watchers will be eager to hear his views on whether the increase in inflation is transient or not.
Then, people would like to know to what extent he thinks that the Delta variant of the coronavirus will impact the recovery. This is in keeping with the theme of the conference, ‘Macroeconomic Policy in an Uneven Economy’. We had published a curtain raiser a couple of days ago. In case you missed it, read it here.
Whatever be the case at Jackson Hole, in India, RBI Governor Shaktikanta Das has explicitly ruled out shocking the markets with a sudden rate hike. He also emphasised that the current inflation trajectory is transitory. You can catch the highlights of his interview with CNBC-TV18 here.
Our research team has also written the following notes full of investment insights:
IRCTC — Why this opportunity is much beyond the near-term revenge travel
Weekly Tactical Pick | Engineers India
NMDC: Dividend remains a draw
CreditAccess Grameen – Should investors bet on improving collection efficiency?
What else are we reading today?
Herd Immunity Tracker: Risk of next wave high, only 10% fully vaccinated
Needed, a plan to handle ripple effects of electric vehicle boom
Will China’s digital currency end US Dollar dominance?
India on the right side of gas cycle, but has to do more to avoid supply shocks
ReNew Power’s Nasdaq listing makes a case for SPACs in India
Caste census demand poses a dilemma for BJP
Wavering US investors cut leverage for first time since start of pandemic (Republished from the FT)
Picks from our Technical Analysts: Britannia, HDFC Life and BPCL (These are published every trading day before markets open and can be read on the app)
Ravi Krishnan
Moneycontrol Pro
