Bloomberg Talks PIIE President Adam Posen Talks Jackson Hole Symposium
Aug 22, 2025
Adam Posen discusses the powerful support for Federal Reserve independence observed at recent central banking meetings. He emphasizes the challenges facing policymakers in today's unpredictable economic climate. The impact of U.S. economic policy on global trust is highlighted, particularly in the context of inflation and market stability. Additionally, the conversation takes a lighter turn with a playful exchange about baseball and a new podcast series dedicated to stock market updates.
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Fed's Unique Jackson Hole Moment
- Powell's last Jackson Hole sets a different tone because it mixes legacy and genuine economic uncertainty.
- Political attacks on the Fed risk pushing central bankers to visibly defend independence and their policy choices.
We’re Entering A New Economic Regime
- Posen calls current shifts an economic regime change beyond tariffs, affecting yields and capital flows.
- Expect a steeper, higher yield curve, larger risk premia, and stronger dollar pressure abroad.
Rebuild Global Trust Deliberately
- Rebuilding trust in U.S. global insurance requires sustained policy reversal and investment over years.
- Encourage political change, congressional action, and long-term engagement to restore international confidence.