Kevin Warsh’s first Jackson Hole address as Fed chairman, in full.
The line to hear is at 27:02: responsibility for 65 months of sustained, elevated inflation, he says, “sits squarely with the central bank, and that’s where it belongs.”
He also sets out to end forward guidance as a regular practice, says he would be hard pressed to call financial conditions restrictive with PCE inflation at 3.7%, and argues the Fed should not indulge a regime where markets look to it for their next trade.
Timestamps
0:00 Jackson Hole, and a joke about hiking with Don Kohn and Ben Bernanke
2:18 The outline, and “please just don’t call it forward guidance”
3:19 AI as a hinge point, and the end of the secular stagnation consensus
4:34 Token sales up 500% in twelve months
6:40 A new Fed task force on productivity and jobs
7:11 Why forward guidance has outstayed its welcome
10:21 The Hall of Mirrors, and who actually pays for it
13:52 Six principles for the conduct of monetary policy
15:33 “Price stability is not self-executing” and the firm 2% target
18:03 His read of the economy, and the July minutes
19:29 CapEx up 9%, S&P profits up more than 20%
21:03 “Hard pressed to describe broad financial conditions as restrictive”
22:07 Jobless rate at 4.1% and broadly consistent with full employment
23:08 PCE inflation at 3.7%, and why the summer readings do not settle it
27:02 65 months of elevated inflation, and where the responsibility sits
27:34 “Committed to a discipline, not a decision”
#KevinWarsh #FederalReserve #JacksonHole #Inflation #Fed #YahooFinance
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