Omnia Family Wealth in the International Business Times: Will China’s Woes Cause the Fed to Pause Rate Hikes?
The annual Jackson Hole economic meetings held by the U.S. Federal Reserve are closely monitored on Wall Street. During these meetings, the head of the world’s most influential central bank evaluates global and domestic macroeconomics. Crucial policy changes that significantly impact financial markets are typically also announced here.
This year, investors are especially attentive as they aim to decipher whether the combination of increasing bond yields and China’s drop in commodity prices will prompt the Fed to move away from their hawkish stance.
While the economic slowdown and deflation in production costs in China provide a rationale for the Fed to become more dovish, does it align enough with the Fed’s anti-inflation policies to initiate a pause? The International Business Times turned to Michael Wagner, co-founder and chief operating officer of Omnia Family Wealth, for insight.
Wagner explains to the publication that China’s economic woes are likely not enough to impact the Fed’s message at this year’s meeting in Jackson Hole. “If the Chinese real estate issue becomes a global systemic one, the Fed will have to react, but I think we’re still far from that being proven,” he explains.
“The Fed is very data dependent, and the challenge with being data dependent when it comes to anything coming out of China is that the data is probably manipulated,” Wagner adds.