The Jackson Hole symposium kicks off, Fed official Ester George makes hawkish remarks, oil rebounds, and global stocks fall. Here are four things to know in the market today, August 25.
1. The Jackson Hole Symposium Kicks Off
The annual gathering of global central bankers kicked off in Jackson Hole, Wyoming today. All eyes will be on Janet Yellen’s speech, due tomorrow, which is titled “The Federal Reserve’s Monetary Policy Toolkit.”
The full three-day agenda for the gathering will not be published until later Thursday evening.
2. Fed Official Esther George Makes Hawkish Remarks on Rate Increases
Fed official Esther George of Kansas City joined a growing group of policymakers who believe interest rates should be increased in the near-term.
George said the rate hikes should be gradual, and noted that strong second-quarter growth could reach as high as 3%. She also stated in an interview with CNBC that wage inflation has put consumers in a better position to spend.
George was the only Fed member to vote in favor of a rate increase at the last policy meeting.
Her hawkish remarks follow a string of others that believe rates should be increased in the near term.
3. Oil Rebounds
Oil rebounded on Thursday after a sharp selloff on Wednesday sparked by news of a surprise increase in U.S. crude inventories. U.S. crude tumbled 2.8% and Brent fell 1.8% the previous session.
U.S. crude futures were up 0.49% to $47 on Thursday, while Brent climbed 0.45% to $49.27.
OPEC is set to hold an informal meeting in September to discuss the possibility of an output freeze to boost the market. But analysts remain skeptical that the meeting will be fruitful.
4. Global Stocks Fall
European stocks were broadly lower on Thursday, with traders taking a cautious stance ahead of the Jackson Hole symposium.
Stocks in Asia were also lower. Shares in China were under pressure on reports that the central bank held a discussion with lenders on liquidity conditions.
Japan’s Nikkei 225 pushed lower. U.S. futures pointed to a lower opening.
