Adam Posen Thinks Things Could Get 'Messy' for the Fed

Hawkish speeches are free. Rate hikes cost votes, and Jackson Hole never delivers both in the same year.

Kevin Warsh gave a hawkish speech at this year's annual Kansas City Fed Symposium in Jackson Hole, but that doesn't mean the challenges are over. Will the Fed actually pull the trigger on rate hikes? What happens if the central bank doesn't act quickly enough to curb inflation? And how exactly will the new chair leave his mark on the Fed? We speak with Adam Posen, president of the Peterson Institute for International Economics, who gives us his take on the direction of monetary policy and grades Warsh's speech. We also discuss why high inflation in the US is different than other countries, how the Treasury's wading into the bond market affects Fed independence, which of the Fed task forces might be the most impactful, the "messy jobs" theory of AI, and what Warsh really means when he says he wants the FOMC to have a “good family fight.” See Odd Lots Live in LA September 2026 https://events.bloombergevents.com/event/ODDLOTSLA/summary (Source: Bloomberg)

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