This year’s annual central banking retreat, hosted by the Federal Reserve in Jackson Hole, Wyoming, begins this week as global markets experience serious unrest. In what is being called “Black Monday,” Chinese markets saw a dramatic sell-off this Monday, August 24, 2015, coupled with big drops in United States (US) indices as well. Markets failed to recoup the massive losses the following day, responding to the downturn in China’s economic performance and the possibility of an interest rate hike in the US.
These topics will undoubtedly be the center of debate and discussion at this week’s Jackson Hole retreat. Representatives from the Federal Reserve, and other central banks, including the European Central Bank (ECB) and the Central Bank of Japan, will attend. Although Federal Reserve Chair Janet Yellen will not be in attendance, Vice Chairman Stanely Fischer will deliver remarks. Based on the recent market tremors and persistent problems with the European Union’s (EU) sovereign debt crisis, it seems increasingly unlikely that the Federal Reserve’s Federal Open Market Committee (FOMC) will raise the federal funds rate this September as originally anticipated.