Has Fed's George just confirmed some Jackson Hole updates?

Washington (Aug 26)  Price action has been pretty lackluster in the early part of the session, but comments from regional Federal Reserve president Esther George have hit the wires suggesting that there could be an update regarding the pace of the taper and when it could start.

George is president and chief executive officer of the Federal Reserve Bank of Kansas City. She noted that sooner rather than later could be the best option, and she added that the outlook suggests the Fed can begin to make adjustments this year. This is nothing new, but the timing is suspicious.

She then went on to say there has been good progress on the economy and inflation is coming in strong, adding that this suggests an opportunity to dial back asset purchases.

A Reuters poll from this week suggested that investors saw no speed bump in the Jackson Hole event. Maybe this type of preparation from other key Fed central bankers is essential for prepping the markets for what is to come. Fed's George sees that it is time to begin adjusting Fed accommodation. All attention will now turn to Fed Chair Powell and how he could deliver any news.

Gold is finely poised, and any news on the Fed taper or speed could affect the yellow metal. In the past, as Fed members insinuated on the timeline, gold moved higher. Now the pace and dates will be important. If the Fed moves slower or later, gold could react negatively, but if the pace is aggressive and the timeline moves up, there is a chance we could see some upside. For now, we wait for Powell.

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