Investors are geared up for a Friday morning speech that may set the tone for the rest of September trading.
The head of the U.S. Federal Reserve, Ben Bernanke, will give his assessment on the economy as well as his outlook for the rest of the year.
The annual speech by the central bank chief at the Fed’s summer retreat in Jackson Hole, Wyoming, has taken on greater significance in recent years.
It has often become the scene for major policy announcements, including in 2010, after hints regarding a second round of economic stimulus were given.
Investors are again banking for another signal that large-scale bond purchases, known as quantitative easing, would be completed to keep interest rates low.
Expectations have wavered in recent weeks, however, as the central bank has seemed hesitant to show its cards.
Some believe Bernanke will make the Fed’s intention clear as Friday’s speech while others believe he’ll remain cautious.
Many analysts believe the U.S. jobs report, due next Friday, will be the key signal for which direction the central bank policy will move.
Central bank chief speech expected to set the tone for global markets Friday
Mike Eppel
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