Can Fed chief dig himself out of a (Jackson) Hole?
By Russell Hotten
It’s the annual symposium of central bankers from around the world, held in the picturesque Wyoming mountain village of Jackson Hole. Mr Powell’s keynote speech is the much-anticipated highlight. According to Sarah House, senior economist at Wells Fargo Securities: “The whole point [of Jackson Hole] is to get away, take a step back from what we are currently seeing in the economy, and talk about some of the longer term issues.” A big problem for the Fed chief, however, is that Mr Trump has painted him as an economic threat, and few people have come to the central banker’s support. Populists side with the president, while Democrats and progressives think the Fed is just out to protect Wall Street and don’t want to be seen as defenders. Karen Petrou, managing partner of Federal Financial Analytics, says Mr Trump has set up Mr Powell for blame if, or when, things go wrong. For all the president’s contradictions, he’s a master of political reality, she says.