Adam Posen Thinks Things Could Get 'Messy' for the Fed | Odd Lots

Kevin Warsh gave a hawkish speech at this year's annual Kansas City Fed Symposium in Jackson Hole, but that doesn't mean the challenges are over. Will the Fed actually pull the trigger on rate hikes? What happens if the central bank doesn't act quickly enough to curb inflation? And how exactly will the new chair leave his mark on the Fed? We speak with Adam Posen, president of the Peterson Institute for International Economics, who gives us his take on the direction of monetary policy and grades Warsh's speech. We also discuss why high inflation in the US is different than other countries, how the Treasury's wading into the bond market affects Fed independence, which of the Fed task forces might be the most impactful, the "messy jobs" theory of AI, and what Warsh really means when he says he wants the FOMC to have a “good family fight.” See Odd Lots Live in LA September 2026 https://events.bloombergevents.com/ev... Chapters: 00:00:00 - Debate Culture at the Fed: "Family Fight" and the Powell Consensus 00:00:45 - Introduction: Adam Posen, Peterson Institute 00:02:16 - Assessment of Chair Warsh's Jackson Hole Speech 00:07:37 - Warsh's Preference for Last-Minute Discretion 00:10:24 - The Role of the Fed Chair and Committee Dynamics 00:13:17 - Was the Fed's Inflation Record Powell's Fault? 00:17:06 - Political Interference with the Fed and Fiscal Dominance 00:20:16 - Debate Culture at the Fed: "Family Fight" and the Powell Consensus 00:23:56 - The Fed Communications Task Force 00:30:15 - Economists Moving to AI Companies 00:36:08 - AI's Current Economic Impact: Productivity vs. Labor Market 00:44:47 - GDP Mismeasurement and AI's Contribution 00:51:18 - Inflation Outlook and Rate Hike Expectations 00:54:23 - Final Thoughts Watch Bloomberg Vodcasts:    • Bloomberg Video Podcasts | Interviews & More   Watch more Odd Lots episodes:    • Odd Lots   Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets. Join the conversation: discord.gg/oddlots Subscribe to Bloomberg Podcasts: https://bit.ly/BloombergPodcasts Check out more Odd Lots:    • Odd Lots (Audio)   Get the Odd Lots newsletter: https://www.bloomberg.com/account/new... And for all things Odd Lots, visit https://www.bloomberg.com/oddlots #Investing #Markets #Finance #Bloomberg #Podcast #OddLots Visit us: https://www.bloomberg.com/podcasts For coverage on news, markets and more: http://www.bloomberg.com/video Visit our other YouTube channels: Bloomberg Television:    / @markets   Bloomberg Originals:    / bloomberg