Big week: Powell speaks and Republicans debate, budget talks continue, summit concludes

On Friday at 10:00am ET Fed Chair Powell will give the annual keynote address at the Fed’s Jackson Hole economic conference.  Last year in a crisp 10 minute speech he warned of the pain the Fed was ready to accept with in its fight against inflation.  This year his speech will be closely watched for signs of future policy as the central bank will be a month away from its next interest rate setting meeting on September 19/20. 

Last week the minutes from the July FOMC meeting were released and it was a mixed bag as a divergence is emerging from the Committee members.  While the minutes included comments about the concern Members of the FOMC have about inflation and the need to take whatever action is needed to achieve the 2% inflation goals, the minutes also included the following:

"A number of participants judged that, with the stance of monetary policy in restrictive territory, risks to the achievement of the Committee’s goals had become more two sided, and it was important that the Committee’s decisions balance the risk of an inadvertent overtightening of policy against the cost of an insufficient tightening."

As Powell addresses the Jackson Hole conference he will be aware of the growing split among the FOMC members which will add to the dram...

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