Warsh's Jackson Hole Inflation Vow | Bloomberg Businessweek Daily 8/28/2026

Watch on YouTube ↗  |  August 28, 2026 at 20:53  |  48:57  |  Bloomberg Markets
Speakers
Brooke Evans May — Managing Partner, Evans May Wealth
Michael McKee — International Economics & Policy Correspondent, Bloomberg
Linda Hasenfratz — Executive Chair, Linamar
Max Levchin — CEO, Affirm
Tatiana Darya — Bloomberg News senior equities reporter
Kevin Warsh — Federal Reserve Chairman

Summary

The episode focuses on Fed Chair Kevin Warsh's Jackson Hole speech, where he vowed to return inflation to 2% and signaled the Fed still has work to do. Markets sold off modestly with short-term yields rising, while investor Brooke May discussed equity and credit positioning. The show also covered US-Canada auto tariff risk with Linamar's Linda Hasenfratz and Affirm CEO Max Levchin's bullish view on Affirm's growth and differentiation.

  • Kevin Warsh warned inflation is not meaningfully slowing and stressed the Fed's 2% target is firm.
  • Stocks traded lower and front-end Treasury yields rose as traders priced higher odds of a Fed rate hike.
  • Brooke May said investors can stay in equities and likes investment-grade and high-yield credit.
  • Brooke May highlighted NVIDIA's strong AI-driven earnings and pricing power.
  • Linda Hasenfratz said Linamar is largely insulated from current tariffs but warned a 50% auto tariff would cripple North American auto production.
  • Max Levchin argued Affirm's transparency, profitability, and 30%-plus growth set it apart from competitors.
  • Tatiana Darie noted the pace of yield moves matters more for stocks than the absolute yield level.
Ideas
Michael McKee International Economics & Policy Correspondent, Bloomberg 7:36
Bad inflation raises front-end yields.
Fed Chair Warsh's focus on inflation breadth means bad CPI and PPI reports in two weeks would likely cause markets to price in a September rate hike, pushing short-term Treasury yields higher.
US short-term Treasury yields MED
Brooke Evans May Managing Partner, Evans May Wealth 12:21
Stay invested in equities.
Investors can continue to hold equities because there is broad momentum across large-cap, small-cap, and international markets, and around $7 trillion of cash on the sidelines is likely to be redeployed into equities as earnings momentum continues.
SPY ACWX MED
Brooke Evans May Managing Partner, Evans May Wealth 12:31
Small-cap rate sensitivity deserves caution.
Small-cap equities deserve caution because they are more interest-rate-sensitive: 40%-50% of small-cap company debt is floating-rate, so a Fed rate hike would make this area vulnerable and could warrant trimming certain rate-sensitive exposures.
US small-cap equities MED
Brooke Evans May Managing Partner, Evans May Wealth 14:43
NVIDIA AI demand remains strong.
NVIDIA shares are positioned for continued strength because AI demand is real, earnings are strong, and the company is expected to sustain 72%-73% profit margins next year with pricing power, broadening customer demand beyond hyperscalers to neo-clouds, and AI-related earnings strength into 2027. The post-earnings pullback is not systemic and may be rate-related.
NVDA HIGH
Brooke Evans May Managing Partner, Evans May Wealth 17:58
Prefer investment grade and high yield.
She continues to favor investment-grade credit and is willing to buy high yield because she does not see systemic risk, letting investors earn more yield without taking tremendous additional risk.
LQD HYG MED
Linda Hasenfratz Executive Chair, Linamar 22:06
Linamar is insulated from tariffs.
Linamar is relatively insulated from the current US-Canada tariff fight because more than 90% of its sales carry no tariff, the latest 338 US tariffs do not affect its industry, and retaliatory Canadian tariffs are expected to be exempted for factories in its sectors.
LNR.TO MED
Linda Hasenfratz Executive Chair, Linamar 24:42
Tariff threat endangers North American autos.
A threatened 50% tariff on autos and auto parts would be a severe shock because North American automotive supply chains are deeply integrated, with parts crossing borders six to seven times; it would bring the industry to its knees and could shut production within weeks, while higher vehicle prices would hurt demand.
North American Auto Industry HIGH
Max Levchin CEO, Affirm 35:09
Affirm growth and profitability stand out.
Affirm stands out because it has grown 30%-plus for 11 consecutive quarters while remaining consistently profitable, differentiates through transparent, no-late-fee, responsible underwriting that appeals to merchants and consumers, and has additional growth opportunities in in-store and digital wallets.
AFRM HIGH
Tatiana Darya Bloomberg News senior equities reporter 47:58
Watch yield spikes, not yield levels.
The absolute level of 10-year Treasury yields is less dangerous for equity investors than the speed of yield moves; the real threat is a fast spike in the cost of capital, while robust growth such as the 1990s internet boom can offset higher discount rates.
US10Y MED
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This Bloomberg Markets video, published August 28, 2026, features Michael McKee, Brooke Evans May, Linda Hasenfratz, Max Levchin, Tatiana Darya discussing US short-term Treasury yields, SPY, ACWX, US small-cap equities, NVDA, LQD, HYG, LNR.TO, North American Auto Industry, AFRM, US10Y. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Michael McKee, Brooke Evans May, Linda Hasenfratz, Max Levchin, Tatiana Darya  · Tickers: US short-term Treasury yields, SPY, ACWX, US small-cap equities, NVDA, LQD, HYG, LNR.TO, North American Auto Industry, AFRM, US10Y