Corporate foreign exchange news

Showdown at Jackson Hole?

Friday, 27 August 2010 10:10:00 GMT

Published by Zeb Bham
As global central banking chiefs meet at Jackson Hole in Wyoming this weekend, there may be disagreement as to which monetary and fiscal strategy is best to promote growth and ensure recovery.
The heads of the European Central Bank (ECB) and the US Federal Reserve, in particular, may lay down divergent courses of action during the weekend meeting, which is closed to the press.
At the beginning of the global financial crisis, Jean-Claude Trichet and Ben Bernanke, as heads of the ECB and the Fed respectively, united to fight the worst recession the world has seen in sixty years with a combination of unprecedentedly low interest rates and massive economic stimulus.
Now, however, the ECB is hoping to hold back from further stimulus measures and fiscal intervention - as is the Bank of England's governor Mervyn King.
As the Independent reports, in the US, "the thinking is more flexible", and as the heads of the world's largest central banks meet over the weekend, experts anticipate that we may see rifts in policy strategies emerge.
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