Allianz chief economic adviser El-Erian said Kevin Warsh will give his first
Jackson Hole keynote as Fed chair and faces a delicate test: markets want both
forward guidance on the Fed’s policy reaction function and a return to the
forum’s long-term strategic remit. El-Erian said technology-driven and
geo-economic structural shifts argue for greater focus on complex domestic
structural issues, but balancing those expectations with near-term policy
signaling is difficult and unlikely to satisfy all participants; external
policy factors add further complication. He added the speech will offer a key
window on Warsh’s policy thinking and leadership and said he personally hopes
Warsh emphasizes long-term structural topics amid visible divisions within the
FOMC.
