Warsh and peace
Summary
Hosts Katie Martin and Rob Armstrong analyze Fed Chair Kevin Walsh’s hawkish Jackson Hole speech, which clarified inflation targets but failed to stabilize bond markets. They discuss rising US yields, driven by concerns over government debt, strong nominal growth, and competition from AI data center bonds. The episode also covers the unexpected resilience of stock markets and the growing public backlash against data center construction.
Topics discussed
Intro: Jackson Hole, Fed Chair Walsh, and bond market uncertainty
Walsh's confusing early press conferences and forward guidance
Walsh's clear hawkish message at Jackson Hole
Market reaction: Rate hike odds surge despite bond pain
Global bond yields spike: US, Japan, and UK records
Theory 1: Fiscal incontinence and government borrowing fears
Theory 2: Strong nominal growth and AI bond competition
Why stocks are rising despite the bond market crash
Long/Short: PR industry value and data center backlash
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