Warsh Signals the Fed Still Has Inflation Work to Do

Kevin Warsh used his Jackson Hole speech to reinforce that the Fed’s 2% inflation target remains firm, while pushing back on the idea that markets should expect constant forward guidance.In this episode of The Financial Exchange, Chuck Zodda and Paul Lane break down Warsh’s first Jackson Hole address, what it means for the September Fed meeting, and how Treasury Secretary Scott Bessent’s bond buyback efforts complicate Warsh’s desire for cleaner market signals. They also discuss how AI investment is helping support economic growth, whether the AI CapEx boom is heading for a bust, and why Nvidia believes it can keep using its balance sheet to fuel demand for its chips.