MBS Week Ahead: What is Jackson Hole (And What it Isn’t)

The Fed’s annual Jackson Hole symposium has often served as a venue for the Fed Chair to offer a sneak preview of impending policy changes or simply to provide a more candid assessment of how the Fed may react to potential changes in employment and inflation heading into the new year.  While this year’s example certainly fills at least one of those roles, it’s also important to understand its limitations.  

The biggest complicating factor is covid.  Specifically, the delta variant and the resulting case count surge are ongoing problems.  The Fed has already …