BlockBeats News, August 26th - This week, central bank officials from around the world will gather in Jackson Hole, Wyoming, USA to discuss how to rethink the global inflation issue, as well as the prospect of rising borrowing costs in the face of new inflation threats. Frankfurt's Thin Ice Macro economist, Spiros, said, "Global central banks are likely to lean towards a cautious stance, seeing inflation as their least desired risk. You never know when the next supply shock will suddenly appear." Credit Agricole's US research director, Subadhra Rajapal, said that countries have varying degrees of urgency regarding inflation, partly due to differences in the impact of energy cost fluctuations, which in turn depend on their import levels.

He pointed out that Europe and Japan are "more sensitive to the Middle East situation and oil prices." Goldman Sachs' Chief European Economist, Yuri Stern, said, "We estimate that the policy rates in the US and UK are still contractionary." "Different starting points mean that countries face different pressures from energy shocks, giving the Federal Reserve and the Bank of England more time to observe how this shock unfolds." Former Philadelphia Fed President Patrick Harker said, "The Iran war has changed the way people discuss issues and make policy choices, and there seems to be no end in sight at the moment." "This makes this year's Jackson Hole Symposium completely different, as we are now in a typical supply shock environment, or more precisely, multiple supply shocks are simultaneously hitting the global economy." (FXStreet)