Warsh Makes Big Promises at Jackson Hole, Experts React

Summary

A Jackson Hole expert reacts to Federal Reserve Chairman Kevin Warsh's first speech, commending his reaffirmation of the 2% inflation target and substantive framework and forward guidance remarks. The speaker sees equity market stability as a result of the speech, but warns inflation is sticky and pressing forward, requiring policy restriction. He says the 'work to do' line was the key message and delivered the intended market reaction.

• Expert praises Warsh's commitment to the 2% inflation target
• Speech characterized as substantive on monetary policy framework and forward guidance
• Equity markets described as stable because the speech delivered what was needed
• Inflation seen as sticky and pressing forward rather than slowing as hoped
• Speaker argues it is time for the Fed to add policy restriction
• The 'work to do' quote is called the money quote that achieved the desired reaction