Incoming: Year's Biggest Central Bank Meeting.

On August 24-26, central bankers and economists will come together to decide their future plans for interest rates and monetary policy.

The annual Jackson Hole Economic Symposium, initiated in 1978 and orchestrated by the Federal Reserve Bank of Kansas City, serves as a pivotal three-day international conference focused on the goals of central banks. Since its relocation to Jackson Hole, Wyoming in 1981, this distinguished gathering has drawn the participation of figures including central bank luminaries, finance ministers, esteemed academicians, and influential stakeholders from the global financial arena.

At its core, the symposium is a platform for the comprehensive exploration of critical economic challenges confronting the international stage. The meeting can heavily overpower most economic news occurring around the same time, as it gives a strong indication of global interest rate policies to come. Economists from the Federal Reserve, alongside their international counterparts, constitute the roster of symposium contributors.

JP Morgan has published several scenarios they deem possible in regard to central bank policy.  It's no surprise that the one causing the most stir is the most negative scenario, in which high inflation is once again used as a reason to re-start the hiking cycle.

Morgan Stanley's Global Chief Economist is convinced that Powell will not commit to anything specific, which will allow him to keep his options open.  Even if this is true, when Powell speaks overly-diplomatically, this can result in the bottled-up pressure of speculators to be released on their own theories which can also lead to aggressive market movements.

As we discussed on Monday, the elephant in this room too will be the USD32 trillion US Treasuries market. The following tweet puts that further and firmly into perspective…

Things to watch during Jackson Hole:

• Gold
• Silver
• Global stock markets
• The US Dollar; and of course…
• US Treasuries