SocGen expecting slightly dovish tone from Yellen

From Societe Generale:

This year’s Jackson Hole Economic Policy Symposium will begin on this evening. Policymakers and academics will spend two days “Re-Evaluating Labor Market Dynamics” – which is the topic of this year’s conference. The topic is at the heart of the current policy debate and the key consideration in the timing of policy normalization. The FOMC has embraced the view that there is still substantial slack in the labor market despite the substantial drop in the unemployment rate.

The latest round of data is generally consistent with this view and has given the hawks very little ammunition to argue otherwise. Therefore we would expect the general tone of the conference to be tilted to the dovish side, suggesting status quo on the policy front for now.

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