Many of the world's major central banks have used huge stimulus packages to try and stabilise the global economy since the 2008 financial crisis. But now, after a decade of low-interest rates and bond buying known as quantitative easing, pressure is mounting on the banks to explain what they intend to do next. Jade Barker has more from Jackson Hole.

 

A fishing retreat, known as Jackson Hole in the far west of America. It's here, in the wilds of Wyoming, that central bankers aim to net some ideas on how they'll manage the global economy. And the financial markets are watching.

 

PAUL SHEARD CHIEF ECONOMIST, S&P GLOBAL "I'm not really expecting any major hints about an impending policy move. There will be speeches from central bankers, occasionally they do use these to drop hints to the market about future policy moves over maybe a shift in monetary policy direction, but that's really the exception rather than the rule".

 

European Central Bank President Mario Draghi made a splash at Jackson Hole in 2014 when he unveiled a 2.7 trillion dollar bond-buying programme to prop up the euro zone economy. And with that now back on track, Draghi will be closely watched for any hints he's about to start withdrawing that stimulus.

 

PAUL SHEARD CHIEF ECONOMIST, S&P GLOBAL "...if there were a hint from President Draghi that maybe they were starting to think about tapering, as it's called, perhaps early next year. They've committed to continue with the 60 billion euro monthly purchases until at least the end of this year and until really they're satisfied they've achieved their goal. So it's really around the 2nd element there that perhaps a hint that they're getting more confident that they are getting closer to achieving their goal".

 

But it's the United States that holds the key. It's raised rates twice this year and pledged to reduce the four-and-a-half-trillion-dollar stack of bonds on its balance sheet. If Fed Chair Janet Yellen signals a shift in policy - the rest of the world is sure to follow.

 

JIM GLASSMAN HEAD ECONOMIST, CHASE COMMERCIAL BANK "...what central banks are doing with asset programs is unprecedented, we've never seen this before and this has been playing in the market for the past 10 years. So they don't know- bond yields are very low. They don't know how much of this is a result of asset purchases. So they're hoping if they can be transparent and orderly in bringing the balance sheet down it will all be very orderly but no-one really knows".

 

After a decade of low-interest rates and trillions of dollars of easy money, the global economy is now at a tipping point. So the financial world will be paying close attention to these meetings that take place here in Jackson Hole over the next few days between the central bankers to get an idea which way it might go. Jade Barker in Jackson Hole, Wyoming, for CGTN.