Next week, the Federal Reserve's annual symposium at Jackson Hole will once again serve as a crucial event for economists and market participants alike.
In a note to clients on Monday, analysts at Goldman Sachs (NYSE:GS) provided a detailed roadmap for navigating the conference, highlighting key aspects to watch.
The symposium, set against a backdrop of global economic uncertainty, will feature prominent central bankers, including Fed Chair Jerome Powell, Bank of England Governor Andrew Bailey, and European Central Bank Board Member Philip Lane. Powell is scheduled to deliver the keynote address on Friday, August 23, at 10:00 a.m. EDT, with Bailey giving the luncheon address later that day at 3:00 p.m. EDT.
Lane will participate in the conference's closing overview panel on Saturday.
Goldman Sachs notes that while the official schedule will be released on August 22, the most immediate policy insights are likely to come from the sideline interviews.
These interviews, which often involve Federal Reserve officials and other international central bankers, typically start on Thursday and continue throughout the conference.
Goldman Sachs says the theme of this year's symposium, "Reassessing the Effectiveness and Transmission of Monetary Policy," will guide the academic discussions.
However, the investment bank expects Powell's speech and subsequent interviews to emphasize data dependency and a cautious approach to rate cuts.
The firm anticipates that Powell will reiterate the Fed's readiness to act swiftly if economic conditions worsen but will avoid committing to aggressive easing without further data.
Overall, Goldman Sachs views the symposium as a pivotal event for gauging the Fed's near-term policy direction, with implications for market sentiment and global economic outlooks.
However, they explain: "While the academic part of the symposium has the potential to impact the long-run direction of policy, the side interviews should shed more light on immediate policy questions. And we should note that this particular conference is one of many such events held throughout the year, with no particular extra relevance in this regard."