Kevin Warsh opened his first Jackson Hole speech in August by recalling his hikes with Don Kohn and Mark Carney, which were nicknamed “death marches.” After declining in July to elaborate on his monetary policy, Warsh delivered a more constructive assessment of the economy in his speech, easing some market concerns. Kohn viewed the change as an adjustment following a hawkish inflation-focused address on his 100th day in office that also raised questions about artificial intelligence. He believes Warsh is adapting based on what he is learning inside the Fed, although observers still question whether the chairman will maintain his earlier positions on forward guidance and artificial intelligence. Kohn’s hikes with other central bankers also provided informal forums to discuss inflation targets, nominal gross domestic product targets and difficult monetary policy issues.
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