Free Trial

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

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

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.