10AM Hour: Special Coverage of Fed Chairman Warsh's Jackson Hole Speech 8/28/26

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**Carl Quintanilla** (1:00)
Good Friday morning. Welcome to a special edition of Squawk on the Street. We are moments away from the Fed chair speech at Jackson Hole. I'm Carl Quintanilla with David Faber, Mike Santoli live at Post 9 at the New York Stock Exchange. Sara Eisen is the morning off. We've got a great lineup to help make sense of the Fed chairman's message today, including former Fed Governor Randy Kroszner, Liz Ann Saunders from Schwab, David Bianco from DWS, Ashok Bhatia from Newburger, Investor Dan Niles, and former Chicago Fed President Charles Evans. As we get ready for the speech in a couple of minutes here, let's bring in Randy Kroszner, former Federal Reserve Governor, now professor at University of Chicago's Booth School of Business. Randy, important day. Appreciate your time as always.

**Randy Kroszner** (1:39)
Sure.

**Carl Quintanilla** (1:40)
A lot of discussion about things he may not address, Fed independence, fiscal largesse, which I guess kind of makes sense given that this is a chair who says he wants to say less.

**Randy Kroszner** (1:51)
I think he's going to make it short, sweet. He's going to stay in his lane, which is monetary policy. He's not going to be commenting on fiscal policy. I think anybody who's expecting a pivot to forward guidance is going to be sorely disappointed.

**Carl Quintanilla** (2:06)
How does he address the Treasury buyback and the relationship with Treasury?

**Randy Kroszner** (2:12)
My guess is he's not going to directly touch that because he has said in the past that he wants to make sure that, and this actually relates to his discussions of Fed independence, that the Fed started commenting on too many different things, and that raises questions about its independence. It should stay in its lane, and then he says he hopes that if they stay in their lane, other people won't tell them what to do.

**David Faber** (2:36)
Randy, I wonder if we might get anything, it's sort of in the area of a framework for thinking about how he approaches inflationary dynamics, interplay with policy, whether we can expect some kind of disinflationary productivity bonanza. It feels like he likes to kind of grab for supply side productivity type promises out there in the data. So I just wonder if there's anything out there that you think will illuminate his theory of the case of how that all works.

**Randy Kroszner** (3:08)
So I think those are exactly the things that he is interested in.
I'm not sure he's going to prejudge the task forces that he has, because he has a task force on exactly that. He's a task force on thinking about how technological change may be affecting the best way to measure inflation. So he may talk about the task forces, about the key questions that they are going to address. My hunch is he's not going to prejudge that quite yet.

**Carl Quintanilla** (3:35)
What do you make of some of the hawkish chat we've already gotten out of the Kansas City Fed?

**Randy Kroszner** (3:41)
Well, certainly there are a number of Fed FOMC members who are certainly quite hawkish.

**SPEAKER_1** (3:48)
Randy, let me catch up and get to Steve Liesman and Jackson Holstein.

**Kevin Warsh** (3:52)
Super kind introduction. It was 25 years ago that we were colleagues. It's an honor to share the stage with you. It's great to be back here in the Valley again, see so many familiar faces from academia, from my last tour of service, and from my first 100 days, which is just this weekend. I've been looking forward to this weekend. And before I go further, I want to thank Jeff Schmitt and his team for the incredible hospitality. Everybody here is in debt to you and to your colleagues here at the Federal Reserve Bank of Kansas City. Jeff, our thanks to you and your team. Now, he and the other planners here have some recreation options lined up for later today. I'd advise you to be very careful with your choices. As I learned years ago, you can take two different kinds of hikes on the trails around Jackson. I can sum up my hikes with former Vice Chairman Don Cohn with two words, I survived.