US Fed Chair Janet Yellen speaks with European Central Bank President Mario Draghi in Jackson Hole in 2014. Photo: Reuters / David Stubbs

When US and European central bank chiefs Janet Yellen and Mario Draghi head to Jackson Hole, Wyoming this week, inflation will be the main question on everyone’s mind.

Yellen is scheduled to deliver a speech about financial stability at 8 am on Friday. Her decision to speak about the topic comes after “one participant stressed [during the July 25-26 Fed meeting] that the risks both to the Committee’s inflation objective and to financial stability would require careful monitoring, [and a] gradual approach to removing policy accommodation would likely strike the appropriate balance between promoting the Committee’s inflation and full employment objectives and mitigating financial stability concerns.”

Minutes from the July Fed meeting revealed that policy makers are finally beginning to openly question traditional inflation models, as prices have been slow to pick up, despite solid growth and falling unemployment.

Draghi will speak at 1 pm Friday, focusing on the theme of this year’s event, “Fostering a Dynamic Global Economy”, according to an ECB spokesman. Markets will be looking for any policy signals from Draghi regarding the ECBs bond-buying program.