The leaders of the world’s major central banks will gather this week for their annual informal talks in Jackson Hole, Wyoming. It isn’t a decision-making summit; it’s a gathering that offers insights into how policymakers view the path ahead for monetary policy. Markets and the public alike watch closely for hints about future official interest rates from the Federal Reserve and the European Central Bank (ECB).
The Economic Policy Symposium hosted by the Federal Reserve Bank of Kansas City, one of the 12 regional banks within the U.S. Federal Reserve System, has been held every August since 1978. Since 1982, the venue has been a valley surrounded by the Rocky Mountains within Grand Teton National Park. The choice of Jackson Hole has become symbolic: it is where the Fed chair frequently serves as the keynote speaker, shaping the tone for the year to come. Fly fishing and a preference for the outdoors are often cited as part of the locale’s appeal to senior policymakers.
What begins as a three-day informal meeting attracts around 120 attendees. Economists, financial market managers, academics, senior U.S. officials, and journalists come together to discuss macroeconomic issues with a long-term horizon. The central bankers are the central figures, often providing clues about the region’s monetary policy trajectory. In initial years the circle was mainly U.S. authorities, but over time participation expanded to roughly 40 central bankers from other countries. A familiar presence is a senior ECB representative, typically in the chair role, reflecting the event’s global scope. This is widely regarded as the largest annual gathering of central bankers. For context, the ECB runs a similar meeting in Sintra, Portugal, at the end of June each year.
The Kansas City Fed notes on its website that the conference hotel is a resort that lacks a spa, gym, or similar amenities. That detail underscores the event’s focus and its openness to the public for two days of activity, including a welcome reception on the first day. Participants cover their own travel, lodging, and personal entertainment expenses, along with a conference fee that supports the event and media coverage.
Under the official title structural changes in the global economy, the 2023 conference marks its 46th edition. The gathering examines how the pandemic’s immediate effects are receding while lasting shifts persist in how economies are structured, both domestically and globally, as trade networks evolve and financial flows adjust. The policy responses to the pandemic, along with the rise in government debt, are expected to influence monetary strategy and the broader policy toolkit in the years ahead, according to the Kansas City Fed.
Beyond the academic dialogue, investors monitor the event for signals they can apply to policy expectations. In particular, observers anticipate remarks from the Fed chair and the ECB president, who typically address attendees in separate sessions on the final day. While the full attendee list is not published until the day of the gathering, the discussions often center on the likely path for interest rates. In July, both institutions moved to raise rates to confront high inflation, while leaving the door open to further adjustments or pauses as conditions evolve heading into September and beyond. The Jackson Hole setting, the mix of voices, and the lack of a formal agenda all contribute to a unique atmosphere where policymakers, markets, and observers weigh the risks and opportunities ahead. Source attributions: Federal Reserve communications and European Central Bank updates provide context for the event and its global significance.