What the Fed Chair Should Really Say at Jackson Hole: A Candid Take on Rates and Independence

Our Jackson Hole Speech

Good morning. The financial world is abuzz as Federal Reserve Chair Jay Powell prepares to speak at the annual Jackson Hole summit. While we don't know his exact words, here's a bold, hypothetical speech we'd love to hear—cutting through the jargon and getting real.

"Ladies and gentlemen, this ain't my first rodeo. I've been Fed chair since 2018, and this is my eighth time here. With my tenure ending in May, I'm speaking plainly today for all Americans to understand the Fed's role in our prosperity. Forget the technical terms; I'm focusing on two things: cutting interest rates and cutting the bullshit.

On rates, the situation is murky. A year ago, we felt relief as inflation cooled and the job market stabilized. Now, inflation is rising again, with goods prices climbing and services stuck high. Families feel it daily, and no excuses about tariffs change that. Meanwhile, job growth has slowed, but we're unsure if it's due to falling demand or supply issues like immigration changes and an aging workforce. The unemployment rate is low but creeping up, and we're hungry for more data. Cutting rates isn't an easy call, as shown by recent FOMC dissents, but that's the process working as intended.

Which brings me to my second point: cutting the bullshit about Fed independence. Yes, there's political pressure—it's always been there, from LBJ to Nixon. But the Fed is built to withstand it, with long governor terms and budget control. Independence is protected by law and the judgment of history. We won't be remembered for loyalty to a party but for putting the country first. The Fed remains strong and focused solely on American prosperity, ready to ride out any storm.

Thank you."

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