By Ann Saphir

(Reuters) – Central bankers from around the world will gather in Jackson Hole, Wyoming, for the Kansas City Federal Reserve’s annual symposium in Grand Teton National Park.

This event is closely watched by investors, as remarks from influential monetary policymakers can lead to market fluctuations.

HAWKS AND DOVES

This year’s guest list includes around 120 attendees, comprising 19 Federal Reserve policymakers, central bankers from various continents, and numerous economists, officials, and journalists. Specific details on participants and agenda are kept secret until Thursday evening.

A BEAR AND A BUNCH OF PAPERS

The symposium starts with a dinner under antler-adorned lights at the historic Jackson Lake Lodge, featuring a preserved grizzly bear in the lounge. The conference runs until Saturday midday, focusing on discussions of academic papers. This year’s theme is “reassessing the effectiveness and transmission of monetary policy.”

Despite its academic tone, attendees often enjoy outdoor activities, including hiking and wearing western attire.

ACTION IN JACKSON

The highlight of the symposium is Fed Chair Jerome Powell’s speech on Friday morning, where investors hope for insights on potential interest rate cuts amid rising unemployment.

While most analysts predict Powell will confirm inflation’s decline, pre-committing to specific actions during the symposium may be challenging. Powell remains data-driven, with crucial economic data ahead of the Fed’s September 17-18 meeting.

STOCK SHOCKS

Significant market changes during Jackson Hole are rare but do occur. For instance, the S&P 500 index fell 3.4% in 2022 when Powell signaled inflation concerns. In 2009 and 2010, Fed Chair Ben Bernanke’s speeches led to notable stock rallies after promising future bond-buying measures.

Even when markets stabilize, Jackson Hole speeches can influence future policy; for instance, in 2020, Powell indicated a shift in the Fed’s approach to interest rates, leading to a 0.2% increase in the S&P 500 index that day.

THE TROUT

The Kansas City Fed’s symposium dates back to 1978, originally focused on agriculture. After expanding its scope, the event was relocated in 1982 to attract influential attendees like then-Fed Chair Paul Volcker, who famously attended the inaugural dinner in fishing attire.

Alan Greenspan solidified the symposium’s significance beginning in 1991, instituting a keynote address by the Fed chair, emphasizing its role in the global economic dialogue.