Kansas City Fed President Jeffrey Schmid on the First Jackson Hole of the Warsh Era
Summary
Bloomberg’s Odd Lots hosts Tracy Alloway and Joe Weisenthal interview Kansas City Fed President Jeff Schmid at the Jackson Hole symposium. They discuss financial innovation in payments, rising bond yields driven by AI and data center demand, and the structural shifts in the labor market. Schmid also addresses the Fed’s inflation mandate, the new Chair’s communication style, and the ongoing debate over monetary policy.
Topics discussed
Sponsors and show introductions
Welcome to Jackson Hole and symposium theme
Financial innovation, atomic settlement, and bond yields
Labor force structural changes and baby boomer retirements
AI, data centers, and their impact on credit demand
Behavioral impact of higher long-term bond yields
Fed's inflation mandate and recent FOMC dissents
Sponsors and podcast promotions
The decision-making process behind FOMC dissents
New Fed Chair's leadership style and debate culture
Fiscal deficits and the Fed's reaction function
Neutral rate (r-star) and current financial conditions
Fed communication strategy and task force insights
Wrap-up, upcoming events, and closing remarks
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