AI Summary
5 min readWarsh Says the Fight Against Inflation Isn’t Over
Federal Reserve Chairman Kevin Warsh delivered his first major speech today, and traders walked away betting on a rate hike. Warsh signaled that the central bank may not be done fighting inflation, even as the labor market showed signs of softening. In a day packed with economic crosscurrents, the Fed chief’s comments dominated markets—the S&P 500 initially rose, then turned lower, and all three major indexes closed slightly down. The Nasdaq fell half a percent. The dollar rose alongside bond yields, and gold prices dropped more than 3%.
Warsh Sets a New Standard on Inflation
In his first speech as Fed chair, Warsh gave a more detailed picture of how he reads the economy without drawing a precise map of what he plans to do about it. The Journal’s chief economics correspondent, Nick Timiraos, was there. Warsh pressed the point that he does not consider financial conditions restrictive—meaning the Fed’s current rate might not be doing enough to influence the economy, which is what gets inflation back to the 2 percent target.
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What you'll learn
- 1 (00:26) **Warsh’s First Speech as Fed Chair Rattles Markets** - Kevin Warsh signals the central bank isn't done fighting inflation, leading traders to price in a rate hike.
- 2 (02:45) **Labor Market Data Revised Down** - The BLS reports the U.S. added 79,000 fewer jobs than previously thought over the year ending in March.
- 3 (03:21) **Market Roundup: Stocks Dip, Dollar Rises, Gold Falls** - The Nasdaq fell 0.5% while the dollar and bond yields moved higher.
- 4 (03:57) **Chevron and U.S. Energy Firms Near Venezuela Oil Deals** - Chevron is close to adding two heavy oil fields, and Halliburton is in talks to bring in equipment.
- 5 (05:32) **Venezuela’s Oil Production Stagnates Despite Hopes** - Production remains around 1 million barrels a day, roughly where it was a year ago.
- 6 (06:58) **Corporate America Quietly Hedges Against a Democratic Win** - Big Trump donors like Meta are writing large checks to Democrats and hiring former Biden and Obama aides.
- 7 (10:16) **Japan Spends Record $98.7 Billion to Support the Yen** - The joint intervention with the U.S. brought Japan’s total currency spending this year to about $170 billion.
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Guests on this episode
Show Notes
P.M. Edition for Aug. 28. Economics correspondent Nick Timiraos reports from Jackson Hole on how investors are interpreting Federal Reserve Chairman Kevin Warsh’s speech. Plus, some of President Trump’s biggest corporate donors are now cutting checks to Democrats, too. WSJ’s White House reporter Annie Linskey explains how American companies are preparing for a potential Democratic comeback in November. And WSJ's global energy reporter Collin Eaton unpacks how Chevron and other U.S. energy companies are closing in on deals worth billions to expand in Venezuela's oil fields. Sabrina Siddiqui hosts.
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