Bloomberg Daybreak: US Edition Instant Reaction: Jay Powell's Jackson Hole Speech
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Aug 22, 2025 Jim Bullard, former St. Louis Fed President and online technology education advocate, joins Rich Clarida, former Fed Vice Chair and Global Economic Advisor at PIMCO, alongside Kate Moore, Citi Wealth's Chief Investment Officer. They dive into Fed Chair Jay Powell's remarks on potential interest rate cuts amid labor market concerns and varying economic conditions. The trio discusses the balance of risks in inflation and employment, the implications of a K-shaped recovery, and how technology shifts are reshaping monetary policy and market dynamics.
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Powell Opened Door To September Cut
- Jerome Powell's Jackson Hole speech leaned toward a September 25bp cut by emphasizing a softer labor market.
- Jim Bullard viewed the framework remarks as thoughtful and consistent with committee expectations.
Purdue's Mandatory AI Requirement
- Jim Bullard described Purdue's decision to require an AI course at the Daniels School for every student.
- He used this to illustrate AI's importance and diffusion potential in education.
Room To Maneuver With Moderately Restrictive Rates
- Bullard argued the policy rate is moderately restrictive and can be eased modestly while still slowing inflation.
- He suggested a careful path could still deliver about 100bp of cuts into 2026 if data allow.