Kansas City Fed President Jeffrey Schmid sat down with Bloomberg’s Odd Lots podcast on August 27 to preview the 49th annual Jackson Hole Economic Policy Symposium, and he didn’t exactly bring comforting news for anyone hoping the Fed was about to declare victory on inflation. Schmid described current price pressures as “too hot,” with inflation still running above the Fed’s 2% target, and characterized the existing monetary policy stance as “very accommodating.”
A new chair, a new era at Jackson Hole
The symposium, running August 27 through August 29, carries the theme “Financial Innovation: Implications for Payments and Policy.” This year’s event also marks a significant transition. It’s the first Jackson Hole symposium under Fed Chair Kevin Warsh, who faces the task of delivering a keynote that markets will parse for every syllable. Investors and traders are treating his address as a key signal for future rate decisions, particularly given that bond yields remain elevated and the labor market is absorbing the early effects of AI-driven displacement.
Payments innovation takes center stage
The symposium’s theme signals that the Fed is paying serious attention to how technology is reshaping the plumbing of the financial system. Schmid used his podcast appearance to highlight the disruptive nature of recent advancements in payment technologies, noting that these shifts could force banks to rethink how they manage liquidity and duration risks.
