Jackson Hole / ECB / Swiss National Bank / Emotional Intelligence

Good Morning Ladies and Gentlemen

”Emotional intelligence is a crucial social skill for effective management.”

From old course materials from the University of Liechtenstein for the Executive MBA, which I completed a long time ago

Jackson Hole

The three-day Jackson Hole Economic Symposium, hosted by the Federal Reserve Bank of Kansas City, started yesterday in Wyoming, USA. The event brings together influential central bankers, finance ministers, academics, and financial market players worldwide. This year’s theme is “Reassessing the Effectiveness and Transmission of Monetary Policy.” I wonder what information we will receive from the weekend press from the event.

European Central Bank’s Path

I believe the European Central Bank should consider further lowering key interest rates at its next meeting on 11 and 12 September in Frankfurt, just one week before the Fed meeting in September. The slow economic indicators, particularly from Germany, the world’s third-largest economy, justify a rate cut in the current environment of consistently stable inflation. According to the minutes of the last interest rate meeting on 17 and 18 July, published yesterday by the European Central Bank, the upcoming September meeting is seen as a favourable time to reassess the extent of the current restrictive monetary policy. The minutes also state that “this meeting should be approached with an open mind,” which is hopefully common practice among central bankers.

FT Article on the Interventionism of the Swiss National Bank (SNB)

My friend, Freddie Hasslauer, recently penned a letter to the editor of the Financial Times, which was published a few days ago. In the letter, he delved into the success story of the Swiss central bank’s interventionism. I sought Freddie’s permission to share the link to the letter in my “Stefan’s Weekly,” and he graciously consented. You’ll find it particularly intriguing, especially if you typically oppose any intervention by central banks, as it offers an alternative perspective. Please enjoy the read: https://on.ft.com/3Xfycf3

Emotional Intelligence and Accountability

Ladies and Gentlemen, I am a little unsure and wonder whether, at the age of 61, I can maintain my conservative values or if I have to recalibrate them. I was taught as a kid by my parents, during many years on the job, and during multiple management courses many, many years, even decades ago, that emotional intelligence and accountability are crucial social skills for effective leadership. For the sake of it, suppose you were an experienced management consultant committed to sustainable corporate governance and communication who authored works on these topics. How would you assess a leader who lacks emotional intelligence, accountability and, possibly, emotional integrity? What key attributes define a great leader? Are qualities such as honesty, intelligence, integrity, and personal charisma still essential components of effective leadership today, or are they overrated? Are they just nice to have, or maybe even irrelevant, because other skills are more important? Again, just for the exercise, what qualities would you demand from a leader or even a global “Máximo Líder” if there was one, and if you had a say?

Ladies and Gentlemen

As always, please share your opinion with me, but please do not forget (instead of hitting the reply button) to send your messages to smk@incrementum.li

Many thanks, indeed!

I wish you an excellent start to the day and the weekend!

Yours truly,

Stefan M. Kremeth
CEO & Head of Wealth Management
Incrementum AG – we love managing assets

Tel.: +423 237 26 60
Cell: +41 79 303 48 39
Im alten Riet 153
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li