Bloomberg Intelligence Instant Reaction: Jay Powell's Jackson Hole Speech
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Aug 22, 2025 Jim Bullard, the former St. Louis Fed Chief and current Dean at Purdue, and Kate Moore, Chief Investment Officer at Citi Wealth, dive deep into Jay Powell's remarks from Jackson Hole. They discuss potential interest rate cuts and the implications for the labor market amid inflation concerns. Bullard emphasizes the Fed's careful navigation of monetary policy in a changing economic landscape. Moore shares insights on market strategy amidst rising investment optimism and the evolving dynamics of trade—especially around tariffs and their impact on inflation.
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Powell Opened Door To September Cut
- Jay Powell used Jackson Hole to signal a likely September cut by highlighting rising downside labor risks.
- Jim Bullard and markets interpreted the speech as leaning the committee toward a modest September reduction.
Purdue Requires AI For Students
- Jim Bullard described Purdue adding an AI requirement at the Daniels School for every student.
- He used the example to show how AI can drive productivity, especially in higher education.
Beware Short-Rate Cuts If Long Yields Rise
- Bullard warned that short-rate easing could backfire if long-term yields rise from lost Fed credibility.
- He urged proceeding carefully to avoid quickly damaging inflation expectations and markets.