Warsh’s Jackson Hole Debut: Ending Forward Guidance, Restoring Fed Discipline

TREE NEWS reports: In his first Jackson Hole speech as Fed Chair, Kevin Warsh declared the end of forward guidance as a normal-times tool, advocating a return to data dependence and disciplined policy. He outlined seven principles for policy, including anchoring 2% inflation and focusing on short-term rates, while acknowledging AI’s uncertain economic impact. Warsh noted labor market stability but stressed inflation remains too high, with PCE at 3.7%, signaling more work ahead.