Who cares about the heads of central banks



The prospect of raising interest rates in the United States, the impact of President Donald's letter on the decisions of the US Federal Reserve (FED) and the influence of such giants as Amazon on the price level.

This was discussed at the end of last week in the United States in Jackson Hole, Wyoming, in an annual conference convened by representatives of central banks from the United States and other countries, reports the Bloomberg press agency.

FED leader Jerome Powell noted in his report to the conference that it was unlikely that the pace of price growth would significantly exceed the target rate of 2%. He said that the rate of inflation is not rising and there are no signs of overheating the economy.

Investors have understood this statement as a sign that interest rates will at least not rise rapidly to rise faster than previously thought, and perhaps even slow down the pace of monetary policy tightening, analysts say.

Mr. Powell made it clear that a new interest rate increase is expected in the United States in September, and a rise in interest rates is likely to occur again in December.

Short stories

Heads of central banks also discussed the latest announcement that US President Donald Trump is not satisfied with the FED leadership. Powell & # 39; s tightening of interest. As you know, about this p. A brief overview has recently been made at various fundraising events of major Republican party sponsors.

However, FED managers in the Jackson Hole debate jumped about the influence of politicians on FED's decisions.

"The central bank and my job are to make monetary policy decisions without taking into account political considerations and political influence," said Robert Kaplan, head of the FED Dallas division.

Amazon effect

Heads of central banks have also discussed a topic – the so-called Amazon effect, when large American and other developed economies achieve such economies of scale when prices are very low and the central banks' task of ensuring sustainable price growth is aggravated.

According to the participants in the discussion, a similar influence on the price level is attributed to Apple, Google and other companies.

Admittedly, some economists were skeptical and argued that there is no evidence that a high concentration would have destroyed competition in certain sectors.

The focus of the other central banks of Tarot was focused on the financial crises of the Turkish-Argentine central banks.

The Jackson Hole conference discusses global economic and monetary policy issues. The conference is dedicated to central bank managers, monetary policy makers and the scientific community. The Jackson Hole conference takes place since 1981, sponsored by the FED Kansas Branch.

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