(Reuters) – Jackson Hole, Wyoming, is the focal point for markets in the coming week as investors zero in on the Federal Reserve’s annual confab.
Business activity indicators in the euro zone and an inflation gauge in the United States are also on tap, while rate cuts may be looming in China.
Here is a look at the week ahead from Tommy Wilkes and Marc Jones in London, Kevin Buckland in Tokyo, Ira Iosebashvili and Lewis Krauskopf in New York, Riddhima Talwani in New Delhi, Sumanta Sen in Mumbai and Vineet Sachdev in Bengaluru.
How big will future rate hikes be? How strong is the economy? What about quantitative tightening?
Investors hope the Federal Reserve may shed light on those questions when central banking heavyweights meet on Aug. 25-27 for their annual symposium in Jackson Hole, Wyoming.
U.S. stocks have screamed higher this summer, despite Fed warnings that expectations of a peak in inflation and a so-called dovish pivot from the central bank may be premature.
Some investors believe Chairman Jerome Powell will push back against the market’s optimism again, reminding investors that there is one more inflation report and another jobs number before the Fed’s September meeting.
Also in demand are further details on the Fed’s reduction of its $9 trillion balance sheet, known as quantitative tightening, which some investors have flagged as a potential risk to market liquidity.
Graphic: Tightening up – https://graphics.reuters.com/GLOBAL-MARKETS/THEMES/zdvxozgrjpx/chart.png
