STORY: From a central bank shin-dig in Wyoming to inflation data out of Japan, these are the stories to watch in business and finance in the coming week.
:: Jackson Hole
Central bankers descend on Jackson Hole, Wyoming, on Thursday.
The annual conference takes place as stocks hover near record levels, and U.S. President Donald Trump continues to take shots at Federal Reserve Chair Jerome Powell.
Economists will be listening closely to what Powell has to say:
Any hint that a September rate cut isn’t happening and markets could sell off hard, while an overly upbeat tone may feed more euphoria.
:: Stagflation nation
About 60% of global investors surveyed by Bank of America think U.S. stagflation could be the dominant global market regime within three months.
The week’s business surveys will offer more clues about whether U.S. tariffs are driving the world’s largest economy towards stagflation.
Société Générale expects Fed rate cuts to inflate a stock-market bubble that might not pop until at least next year.
:: Japan’s next move
Friday’s inflation data will be in focus for any sign of when the Bank of Japan’s long-pledged tightening cycle will resume.
The previous reading of the core consumer price index showed an annual 3.3% increase in June, remaining above the BOJ’s 2% target for over three years.
The long road towards normalization has been complicated by uncertainty over U.S. tariffs and concerns about whether Japan was seeing the right kind of price increases.