Ben S. Bernanke, the world’s most- powerful central banker, says he doesn’t understand gold prices. If his peers had paid attention, they might have stopped expanding reserves that lost $545 billion in value since bullion peaked in 2011.
The Federal Reserve’s annual monetary conference in Jackson Hole, Wyoming, will probably focus on global central banks as Ben S. Bernanke becomes the first Fed chairman to pass up the meeting since 1988.
The Federal Reserve is buying mortgage-backed securities and has stated it will keep interest rates low until unemployment falls. The Bank of Canada under Mark Carney likewise made an explicit promise about how long rates would be held down, and Carney is now bringing this practice to the Bank of England. The European Central Bank, led by Mario Draghi, has refined how it communicates its interest- rate intentions.
Federal Reserve Vice Chairman Janet Yellen and former Bank of Israel Governor Stanley Fischer will moderate discussions this month at the Kansas City Fed’s Economic Policy Symposium in Jackson Hole, Wyoming.