All it takes is a slow month of August for investors and financial media to prey on the US Fed to make some sort of headline at the annual Economic Symposium in Jackson Hole, Wyoming. What is typically a conference for policy wonks and academics, but gathers attention annually thanks to Ben Bernanke and his policy guidance in the wake of financial crisis has investors and economists listening intently to Federal Reverse Chair Janet Yellen’s remarks today.
The main take away from the Fed is that the case for raising interest rates has increased with stronger U.S. labour market, which market participants are perceiving as getting ready for a move as soon as September.
The reality is this is simply more of the same from a data driven fed awaiting confirmation from the markets they monitor.
Very apropos with the headlines of record low policy interest rates and potential for change are secondary headlines this morning. What is being reported as a crises in pension fund earnings, the latest being the world’s largest pension hit with $52 billion dollar loss in their latest quarter as its clear who the victims of low rates really are.