Central Bankers Diverge on Rates Path Ahead of Jackson Hole
- Judgment call on setting rates gets tougher as cycle extends
- Policymakers gather this week at Jackson Hole symposium
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Central bankers gathering this week for one of the world’s most prominent annual economic forums are set to find themselves more divided than perhaps any time since before the pandemic.
For years, assessments at the Federal Reserve, European Central Bank and a swath of their developed-world peers were much the same. When the initial 2020 Covid shock struck, they slashed interest rates and pumped in liquidity. And when it became clear that a subsequent bout of inflation wasn’t going away on its own, they implemented the most aggressive tightening campaigns in decades to counter it.