Warsh Says Inflation Isn't Slowing | The Close 8/28/2026

Watch on YouTube ↗  |  August 28, 2026 at 22:10  |  1:40:21  |  Bloomberg Markets
Speakers
Aron Levine — President, BMO U.S.
Andrew Slimmon — Senior Portfolio Manager, Morgan Stanley Investment Management
Tomer Weingarten — CEO of SentinelOne
Kristalina Georgieva — Managing Director, International Monetary Fund
Sheila Bair — Former FDIC Chair
Steve Sosnick — Chief Strategist, Interactive Brokers
Romaine Bostick — Anchor, Bloomberg
Tim Stenovec — Anchor/Co-Host, Bloomberg TV & Radio
Dana Peterson — Chief Economist at The Conference Board
Jeetu Patel — President and Chief Product Officer, Cisco
Mike Piwowar — Former SEC Chair

Summary

Markets digested Fed Chair Kevin Warsh's Jackson Hole speech reaffirming the 2% inflation target and signaling willingness to hike rates. Stocks finished modestly lower with small caps hit hardest, while short-end yields rose sharply and the curve flattened. Guests discussed the leadership shift toward large-cap tech and financials, AI trade duration, cybersecurity demand, emerging markets, dollar strength, and bank resilience.

  • Fed Chair Warsh vows to keep inflation at the 2% target, lifting rate-hike expectations.
  • S&P 500 and Nasdaq end lower; Russell 2000 underperforms significantly.
  • Two-year Treasury yields jump about 12 basis points and the yield curve flattens.
  • BMO U.S. President Aron Levine cites strong bank capital, margins and growth.
  • Morgan Stanley's Andrew Slimmon sees money rotating into large-cap tech and financials.
  • Andrew Slimmon also argues the market underestimates AI trade duration.
  • SentinelOne CEO Tomer Weingarten highlights AI-driven cybersecurity demand and autonomous platform differentiation.
  • IMF's Kristalina Georgieva backs emerging markets and the US dollar.
  • Former FDIC Chair Sheila Bair says banks can handle and benefit from higher rates.
Ideas
Aron Levine President, BMO U.S. 7:31
BMO has margin, capital, pipeline momentum
BMO's margins are up 20 basis points year-over-year, the bank has more than enough capital to fund future growth, its treasury business grew, M&A pipelines are among the largest ever, and it sees growth across commercial real estate, finance, engineering, construction and emerging markets.
BMO MED
Andrew Slimmon Senior Portfolio Manager, Morgan Stanley Investment Management 18:43
Rate threat shifts toward quality and financials
The threat of Fed rate hikes is causing a leadership change: speculative stocks that depend on rate cuts are selling off, while money is moving into stable large-cap technology and financials, which benefit from high rates.
Large-cap tech XLF HIGH
Andrew Slimmon Senior Portfolio Manager, Morgan Stanley Investment Management 18:43
Rate threat shifts toward quality and financials
The threat of Fed rate hikes is causing a leadership change: speculative stocks that depend on rate cuts are selling off, while money is moving into stable large-cap technology and financials, which benefit from high rates.
IWM HIGH
Andrew Slimmon Senior Portfolio Manager, Morgan Stanley Investment Management 19:53
Earnings drive stocks higher year end
The economy is strong and earnings, not multiple expansion, should drive the stock market to higher levels by year end.
SPY MED
Andrew Slimmon Senior Portfolio Manager, Morgan Stanley Investment Management 21:36
AI trade duration underestimated by market
AI-related stocks trade at reasonable valuations, and he believes the market is underestimating the duration of AI spending; memory stocks trading at singledigit earnings multiples support this, and CEO commentary on multiyear visibility strengthens the case.
AI trade Memory stocks MED
Tomer Weingarten CEO of SentinelOne 36:55
SentinelOne autonomous security platform winning
SentinelOne's autonomous, holistic cybersecurity platform can detect, protect and remediate in real time without heavy integration or consultants; it is one of the only vendors across public cloud, regulated and federal environments, and customers are migrating away from legacy solutions to modern protection, driving accelerating growth.
S HIGH
Kristalina Georgieva Managing Director, International Monetary Fund 80:29
Emerging markets have stronger fiscal frameworks
Emerging markets have done fabulously well because their policy and fiscal frameworks are strong, often better than big economies, and countries that experienced crises have become more disciplined.
EEM MED
Kristalina Georgieva Managing Director, International Monetary Fund 89:11
Dollar supported by US economy, stablecoins
There is no clear alternative to the US dollar as reserve currency; 98% of stablecoins originate from the US and are backed by Treasuries, while US economic strength, deep liquid capital markets, venture capital and innovation underpin the dollar.
USD HIGH
Sheila Bair Former FDIC Chair 94:16
Banks benefit from higher rates
Banks are fine in a higher-rate environment: higher rates generally help banks, there is no 2023-style rapid hike expected, and post-2023 scrutiny of unrealized losses has made bank managers and examiners more prepared.
KBE MED
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This Bloomberg Markets video, published August 28, 2026, features Aron Levine, Andrew Slimmon, Tomer Weingarten, Kristalina Georgieva, Sheila Bair discussing BMO, Large-cap tech, XLF, IWM, SPY, AI trade, Memory stocks, S, EEM, USD, KBE. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Aron Levine, Andrew Slimmon, Tomer Weingarten, Kristalina Georgieva, Sheila Bair  · Tickers: BMO, Large-cap tech, XLF, IWM, SPY, AI trade, Memory stocks, S, EEM, USD, KBE