Squawk on the Street SOTS 2nd Hour: Fed Chair Speaks At Jackson Hole – His Remarks & Investor Analysis 8/22/25
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Aug 22, 2025 Fed Chair Jerome Powell delivered a crucial speech at Jackson Hole, addressing challenges like inflation and employment. Senior economics reporter Steve Liesman provided live insights, revealing market reactions and the implications for investors. Former PIMCO Chief Economist Paul McCulley dissected the evolving monetary policy framework, discussing risks and the delicate balance the Fed must maintain. Tensions also arose with controversies surrounding a Fed governor, showcasing the intense scrutiny the Federal Reserve faces in today's economic landscape.
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Powell Signals Shift In Risk Balance
- Powell signaled the balance of risks is shifting toward labor-market weakness while inflation risks remain present.
- That means policy may be adjusted soon but will remain data dependent.
A Curious Labor Market Balance
- Powell described a "curious kind of balance" with both labor supply and demand slowing sharply.
- That raises the risk that employment can deteriorate quickly, requiring vigilance.
Tariffs Are Raising Prices, Likely Temporarily
- Powell said tariffs have begun to push up some goods prices and their effects will accumulate but are likely short-lived.
- He warned those price shocks could still propagate and require monitoring for second-round effects.