Economic Policies | Weekly Extract August 22nd

Economic policies from various institutions and ideological lines seem to be in conflict around the world as to what is the best way to deal with economic recessions, but in one particular place it is more evident than in others, the United States, where each person from positions of power or influence as public figures, vociferate their opinions as solutions to the various problems, although two heads think better than one, this phrase only applies when there are no mutually exclusive conflicts, that is the dilemma of the week and those to come.

Federal Reserve Chairman Jerome Powell will address the annual global conference of central bankers in Jackson Hole, Wyoming, on Aug. 26, a highly anticipated speech that could signal how high U.S. borrowing costs may become and how long they will have to stay there to reduce runaway inflation.

Powell will most likely craft a speech that focuses almost exclusively on inflation, the risk of spiraling prices and wages, and the costs of inflation expectations getting out of control.

St. Louis Fed President James Bullard backed another 75 basis point move next month, which if implemented would be the third consecutive 75 bp rate hike, something the Fed has never done in its modern history.

Bullard, a voting member of the Federal Open Market Committee and one of the U.S. central bank's biggest hawks, told the Wall Street Journal in an interview published Thursday that he backed another 75 basis point increase in September, arguing that "we should continue to move quickly." To a policy rate level that puts significant downward pressure on inflation.