The Fed’s Economic Symposium: Structural Shifts in the Global Economy

The annual Jackson Hole Economic Symposium, put on by the Federal Reserve Bank of Kansas City, is taking place right now, setting Wyoming as the focal point for U.S. economics. Just this morning, Chairman Jerome H. Powell gave his speech on our country’s economic standing and the actions the Fed has taken to alleviate the stress put on Americans by soaring inflation levels.

Key Takeaways:

• The Fed’s goal is still to bring the inflation rate down to 2%

• Impacts from the Russia-Ukraine war have been the largest driver of inflation since early 2022, especially for headline inflation

• Inflation & prices for core goods have sharply fallen, which can be best seen in motor vehicles

• Mortgage rates doubled during 2022 – but if market growth continues to settle near pre-pandemic levels, housing services inflation can also be expected to fall

• Non-housing services (healthcare, food services, transportation, etc.) make up over half of the core PCE index have been staying consistent, demonstrating they’re less impacted by global supply and are less interest sensitive

• GDP growth is higher than expected so far this year

• Labor supply has improved, with more workers age 25-54 in the workforce

• Number of women in prime working years participating in the workforce reached an all-time high in June

Go deeper: To read Powell’s full speech, visit the Federal Reserve website.