Hours after Kevin Warsh’s first Jackson Hole address as Fed chairman, Nobel laureate Paul Krugman gives his read: the speech was hawkish relative to what Warsh had been saying, he stayed firmly with the standard inflation measure after floating alternatives, and he offered nothing to anyone hoping for rate cuts.
Krugman also flags a contradiction he says is sitting in plain sight, between Warsh ruling out unconventional policy at the Fed and what the Treasury is doing with long-term bond purchases. Plus his read on Canada tariffs.
Featuring:
Paul Krugman, Nobel Laureate in Economics, author of the Paul Krugman Substack
Brooke DiPalma, Yahoo Finance Senior Reporter
Watch the full Warsh speech: [LINK TO THE FULL ASSET]
Timestamps
0:00 What Warsh didn’t say was the story
0:40 Why this counted as a hawkish speech
1:10 Nothing here for anyone hoping for cuts
2:16 Stubbornly above target, and what that points to
3:14 Why the task forces are a time-buying move
4:00 The unconventional policy the Fed swore off, and who is doing it
4:52 “We got a generic Fed chairman”
5:53 Why Warsh saying nothing about AI was the right call
7:11 Canada tariffs, and where this stops being ridiculous
#PaulKrugman #KevinWarsh #FederalReserve #JacksonHole #Inflation #YahooFinance
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