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MNI PODCAST-FedSpeak: Kohn Fears 'Sticky' Inflation Pressures

(MNI) WASHINGTON
EXECUTIVE SUMMARY
  • Former Fed Vice Chair Donald Kohn says Powell "will deliberately stay away from anything that looks like a dovish pivot" in his keynote speech at Jackson Hole.
  • He's worried price pressures will prove "sticky," making it harder for the Fed to achieve a soft landing.
  • "My concern is inflation will be sticky because labor market tightness will be sticky," Kohn said. (See MNI INTERVIEW: Wages Hotter Than Labor Dept. Data-Atlanta Fed)
  • The Fed would be lucky to get PCE to end the year between 4% and 5%, he said, adding the size of the September hike will be guided by incoming inflation and jobs data.

Listen to the full podcast here.

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

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