Friday marks the second day of the 2017 Economic Policy Symposium on "Fostering a Dynamic Global Economy" at Jackson Hole, where leading central bankers are meeting.
As part of this three-day event, Federal Reserve Chair Janet Yellen offered comments on financial stability. Yellen, looking back a decade after the onset of the financial crisis, recognized that the financial system is safer now than it was then. However, some adjustments may be necessary going forward.
"The events of the crisis demanded action, needed reforms were implemented, and these reforms have made the system safer," she said in prepared remarks.
On the other hand, Yellen cited the likelihood of "the all-too-familiar risks of excessive optimism, leverage and maturity transformation re-emerging in new ways that require policy responses."
Chief market strategist at Prudential Financial Quincy Krosby felt that the fact that Yellen mentioned those risks may leave a 2017 rate hike "on the table."
"Having her mention the risks means to me she's keeping a December rate hike on the table," said Krosby. "They believe keeping rates too low for too long can create financial fault lines. It allows for risk-taking to continue."
ECB President Mario Draghi said Friday the global recovery is firming up.
The euro climbed to $1.1930, session highs, after Draghi's remarks, it's highest level since January 2015.
Ahead of the speech, some speculated Draghi might use Jackson Hole to hint at when the ECB might begin tightening monetary policy by cutting back on its asset purchase program.
"I think both [Draghi] and Yellen had very defensive speeches, they wanted to defend their regulatory accomplishments" said chief market strategist at FBN Securities Jeremy Klein. Noting the strengthening of the euro over the dollar, Klein added that "the weak dollar should be better for stocks."
"If the dollar gets out of hands, it can carry down other asset classes," he added.
On Thursday, Kansas City Fed President Esther George told CNBC that the economy was strong enough to handle more rate hikes, despite recent readings of weak inflation.
"I think we should continue with the gradual rate path," Esther George said from the symposium. "While we haven't hit 2 percent, I'm reminded that 2 percent is a target over the long term, and in the context of a growing economy, of jobs being added, I don't think it's an issue that we should be particularly concerned about unless we see something change."