Warsh's Jackson Silence Will Boost Fed Credibility

On his 99th day as Fed Chair, Kevin Warsh delivered a much-anticipated keynote speech at the Kansas City Fed’s annual central banker shindig at Jackson Hole, Wyoming. He opened with a discussion about hikes (the outdoor kind, presumably inspired by the Tetons) and closed with a commitment to “a discipline, not to a decision.”[i] Financial coverage focused on Warsh’s inflation comments—with some presuming a hike is coming in September—though we think that is a bridge too far. To us, the speech was mostly a nothingburger—which isn’t a bad thing! Fewer fireworks from the Fed would be a welcome change—one that likely helps, not hurts, Fed credibility.  Read Full Article »