🇺🇸 Kevin Warsh has just delivered his first speech at Jackson Hole as Fed chair, and the tone was hawkish
1. Inflation data does not show a significant improvement; the 2% target remains firm and immovable
2. The Fed has more work to do unless core inflation moves toward the target quickly
3. The economy remains strong, with healthy spending, steady jobs, and low unemployment
4. Business investment is growing at the fastest pace since 2021, nearly half of it tied to AI construction
5. He questioned how long it will take for AI productivity gains to show up, and prefers a "more discreet" Fed
6. On monetarism, he said money still matters and that the Fed should watch the money created by the central bank and the banking system
1. Inflation data does not show a significant improvement; the 2% target remains firm and immovable
2. The Fed has more work to do unless core inflation moves toward the target quickly
3. The economy remains strong, with healthy spending, steady jobs, and low unemployment
4. Business investment is growing at the fastest pace since 2021, nearly half of it tied to AI construction
5. He questioned how long it will take for AI productivity gains to show up, and prefers a "more discreet" Fed
6. On monetarism, he said money still matters and that the Fed should watch the money created by the central bank and the banking system