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"The US' indirect supply-chain links to China remain intact; along some dimensions - through China's economic ties with Vietnam and Mexico - these indirect links have even been intensifying", Alfaro and Chor wrote. (Bloomberg) -- China remains embedded in US supply chains even as American firms have taken steps to reduce direct imports from the Asian country, according to a paper presented at the Federal Reserve Bank of Kansas City's annual Jackson Hole conference Saturday. [Extracted from the article]

Investors will parse his highly anticipated speech for clues on the outlook for interest rates, which the Fed in July lifted to a range of 5.25% to 5.5%, the highest level in 22 years. (Bloomberg) -- The Federal Reserve Bank of Kansas City's annual gathering in Jackson Hole, Wyoming gets underway with a dinner on Thursday evening. [Extracted from the article]

(All times New York) Furman Says Fed Should Raise Inflation Goal (3:02 p.m.) The Fed and other central banks should consider declaring victory on their price-stability goals once inflation returns to 3%, Harvard economics professor Jason Furman said Friday during the Fed's annual conference in Jackson Hole, Wyoming. In his keynote speech Friday, Fed Chair Jerome Powell warned that policy rates must rise and then stay high for some time, echoing a series of statements earlier in the day from his colleagues that rates must become restrictive until prices begin to cool. Many central banks, including the Fed, have adopted a 2% inflation target in recent decades. [Extracted from the article]

Many central banks, including the Fed, have adopted a 2% inflation target in recent decades. Keywords: 13347Z; BSFO; ALLTOP; BON; BUSINESS; COS; FIN; GLOBALMACR; GOV; INDUSTRIES; MARKETS; NORTHAM; REL; US; WORLD; WWTOP EN 13347Z BSFO ALLTOP BON BUSINESS COS FIN GLOBALMACR GOV INDUSTRIES MARKETS NORTHAM REL US WORLD WWTOP RH8KI3T1UM10 "I think 2% inflation was too low a target. [Extracted from the article]

Keywords: 13347Z; BSFO; ALLTOP; BON; BUSINESS; COS; FIN; FRX; GLOBALMACR; GOV; INDUSTRIES; MARKETS; NORTHAM; REL; TOP; US; WORLD; WWTOP; WWTOPAM; WWTOPAS; WWTOPEU EN 13347Z BSFO ALLTOP BON BUSINESS COS FIN FRX GLOBALMACR GOV INDUSTRIES MARKETS NORTHAM REL TOP US WORLD WWTOP WWTOPAM WWTOPAS WWTOPEU RH8JZAT0AFB5 "I want to push back on your conclusion that "running the economy hot" entails significant risks", Kashkari said to International Monetary Fund First Deputy Managing Director Gita Gopinath, who made the assertion as a panel participant. In his keynote speech Friday, Fed Chair Jerome Powell warned that policy rates must rise and then stay high for some time, echoing a series of statements earlier in the day from his colleagues that rates must become restrictive until prices begin to cool. Bullard Says Rates Working With Shorter Lags (9:40 a.m.) The Federal Reserve's rate hikes are working at shorter lags than in the past, said St. Louis Fed President James Bullard. [Extracted from the article]

Furman Says Fed Should Raise Inflation Goal (3:02 p.m.) The Fed and other central banks should consider declaring victory on their price-stability goals once inflation returns to 3%, Harvard economics professor Jason Furman said Friday during the Fed's annual conference in Jackson Hole, Wyoming. In his keynote speech Friday, Fed Chair Jerome Powell warned that policy rates must rise and then stay high for some time, echoing a series of statements earlier in the day from his colleagues that rates must become restrictive until prices begin to cool. [Extracted from the article]

Online competition has made prices more susceptible to shocks "Fuel prices, exchange-rate fluctuations, or any other force affecting costs that may enter the pricing algorithms used by these firms are more likely to have a faster and larger impact on retail prices that in the past". Fed Chairman Jerome Powell cited the Fed staff paper Friday in a speech at the Jackson Hole conference without offering a full-throated endorsement of its conclusions. [Extracted from the article]

Many central banks, including the Fed, have adopted a 2% inflation target in recent decades. Mester Says It's Premature to Call CPI Peak (3:46 p.m.) The Federal Reserve will keep rates higher until there is compelling evidence that inflation is easing, Cleveland Fed President Loretta Mester said, adding that it's too soon to say whether price growth has peaked. Furman Says Fed Should Raise Inflation Goal (3:02 p.m.) The Fed and other central banks should consider declaring victory on their price-stability goals once inflation returns to 3%, Harvard economics professor Jason Furman said Friday during the Fed's annual conference in Jackson Hole, Wyoming. [Extracted from the article]

Here's what to expect from the two-day conference featuring central bankers from around the world: Returning to an in-person conference for the first time since the pandemic spread in 2020, the heavyweight lineup is headlined by Fed Chair Jerome Powell with a speech on Friday morning, at 10 a.m. Washington time. (Bloomberg) -- The Federal Reserve Bank of Kansas City's annual gathering in Jackson Hole, Wyoming gets underway with a dinner on Thursday evening. [Extracted from the article]

(Bloomberg) -- Central bankers from around the world are gathering in Jackson Hole, Wyoming, for the Kansas City Federal Reserve's annual retreat. Former Federal Reserve Economist and European Central Bank policy maker Athanasios Orphanides renewed the argument for central bankers to set interest rates by following a formulaic policy rule. [Extracted from the article]

(Bloomberg) -- Central bankers from around the world are gathering in Jackson Hole, Wyoming, for the Kansas City Federal Reserve's annual retreat. Federal Reserve Bank of St. Louis President James Bullard said Friday that the central bank needs to take out additional "insurance" in lowering interest rates, and hinted he might be willing to support a cut larger than a quarter point. [Extracted from the article]

(Bloomberg) -- Central bankers from around the world are gathering in Jackson Hole, Wyoming, for the Kansas City Federal Reserve's annual retreat. Federal Reserve Bank of St. Louis President James Bullard said Friday that the central bank needs to take out additional "insurance" in lowering interest rates, and hinted he might be willing to support a cut larger than a quarter point. [Extracted from the article]

"If more markets are becoming "winner-take-all" as with digital platform competition, this will generate the dominance of 'superstar firms,'" Van Reenen writes. Again, he points to research finding labor share at most companies has remained steady, but declined dramatically among "superstar" firms where profits were concentrated. "Even if superstar firms attain their currently dominant positions on their merits of out-competing rivals, it does not mean that they will always use their power for the good of consumers", he writes. [Extracted from the article]

There is concern that several years of low inflation have made central bankers complacent. Two days of heavy rain failed to dampen the spirits of most of the central bankers and economists who met last week in the Rocky mountain resort of Jackson Hole, Wyoming, for the annual symposium of the Federal Reserve Bank of Kansas City, one of the biggest jamborees on their calendar. Now that America's economy is picking up strongly, participants might be forgiven for feeling light-headed, especially at over 6,000 feet. Central bankers' success in reducing inflation over the past decade allows them to pat each other on the back. However, several of the papers presented at this year's symposium questioned whether monetary policy really has been that good -- or just lucky. A paper by James Stock of Harvard University and Mark Watson of Princeton University challenged the consensus view that the decline in America's economic volatility over the past two decades -- with longer expansions and shorter recessions -- was largely the happy result of better monetary policy. They concluded that improved monetary policy accounted for less than 10% of the reduction in volatility. Structural changes, such as better inventory control, the growing share of services in the economy and financial-market deregulation, have also helped to smooth the economy. But as much as half of the decline in volatility, the authors argued, was due to smaller economic shocks, such as changes in the price of oil, and so could prove temporary. If all this were not bad enough, another paper, by Claudio Borio and Bill White of the Bank for International Settlements, argued that central banks' focus on short-term inflation pressures did not guarantee financial and economic stability.

Federal Reserve Chairman Jerome Powell praised the performance of former central bank leader Alan Greenspan for keeping interest rates low in the late 1990s. Powell will be joined by both current Fed governors, Lael Brainard and Randal Quarles, as well as Fed governor nominee Marvin Goodfriend. [Extracted from the article]

The article comments on the annual symposium of the Federal Reserve Bank of Kansas City, held in Jackson Hole, Wyoming, and attended by central bankers and economists from around the world. The topic of this year's symposium was the future economic impact of ageing populations. One of the most interesting papers was by James Poterba, an economist at the Massachusetts Institute of Technology, who explored how demographic change might affect financial markets. As a result of declining birth rates and longer life expectancy, rich countries will have more old people and fewer young. In addition, as the baby-boomers retire, the ranks of the middle-aged will also dwindle. Between 2000 and 2050 the share of America's population over the age of 65 will grow from 12% to 21%, while the share of the population aged 40-64 will fall from a peak of 33% in 2010 to 28% by 2040. The significance of this change is that people tend to save most, and to accumulate financial assets, during middle age. This suggests that changes in the age structure of the population will affect total saving in the economy and thus asset prices. One flaw in this theory, Mr Poterba points out, is that detailed savings data suggest that, while older people stop accumulating further net wealth, they do not run down their assets as fast as the life-cycle theory implies. Because they do not know when they will die, or because they want to leave something for their children, retired people reduce their assets only gradually, in order to ensure they have sufficient capital to live on or to pass on to their heirs. As a result, there may be no sudden rush to sell assets when baby-boomers retire.

In his first three years atop the Federal Reserve, Chair Jerome Powell has followed in the path of his predecessors and used the central bank's annual Jackson Hole symposium to make major pronouncements on monetary policy and the economy. 2008 As the financial crisis raged, Bernanke frequently left the formal conference proceedings to discuss market developments with key lieutenants, including Fed Vice Chairman Donald Kohn and New York Fed President and later Treasury Secretary Timothy Geithner. Keywords: %USD; 321042Z; ALLTOP; ASIA; BON; BUSINESS; CHINA; ECOTOP; FRX; GLOBALMACR; GOV; MARKETS; NORTHAM; TOP; US; WORLD; WWTOP; WWTOPAM; WWTOPAS; WWTOPEU EN %USD 321042Z ALLTOP ASIA BON BUSINESS CHINA ECOTOP FRX GLOBALMACR GOV MARKETS NORTHAM TOP US WORLD WWTOP WWTOPAM WWTOPAS WWTOPEU QYD0AST1UM0X (Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast. [Extracted from the article]

Fed watchers expect Chairman Jerome Powell to suggest that the central bank is ready to reduce interest rates further when he delivers the opening address to the conference on Friday. Fed Chairman Ben Bernanke signaled a third round of quantitative easing was on the table in his speech at Jackson Hole at which he defended the effectiveness of the Fed's controversial bond purchases. As the financial crisis raged, Bernanke frequently left the formal conference proceedings to discuss market developments with key lieutenants, including Fed Vice Chairman Donald Kohn and New York Fed President and later Treasury Secretary Timothy Geithner. [Extracted from the article]