The Warsh Wager: A Test of Federal Reserve Mettle Federal Reserve Chairman Kevin Warsh's recent address in Jackson Hole, Wyoming, offered a nuanced exploration of the delicate balance between economic stimulus and inflation control.
His words were less a clarion call to action than a subtle yet significant departure from the norm. Warsh's assessment is straightforward: inflation has cooled slightly, but underlying trends remain disturbingly high.
This trend would necessitate a more robust response from the Fed if sustained. Warsh's comments suggest that such a response may already be in preparation.