España afronta el dilema de qué hacer con el oro depositado en la Reserva Federal de EE UU

Kevin Warsh, a federal reserve official, has the potential to become a competent president of the Reserve Bank, according to recent assessments. His Jackson Hole speech demonstrated clarity and sensibility regarding monetary policy objectives and the central bank's actions. These qualities are promising and could have significant future implications.

Despite an ambiguous reputation in the past, Warsh's recent behavior suggests a willingness to align with political pressures for optimism about productivity and inflation prospects. Recent improvements in his performance are evident, including the establishment of five working groups to assess various aspects of the economy under his leadership.

The Jackson Hole speech covered three main sections, including reflections on AI's economic consequences, criticism of future interest rate trends, and reaffirmation of the Federal Reserve's core objectives. These topics are crucial for understanding the economy's future challenges. The increasing impact of artificial intelligence on the economy and policy-making is a key concern that requires careful evaluation.

In this context, uncertainty plays a significant role, as it is not only about the impact of monetary policy on the economy but also the broader uncertainty surrounding financial systems, national and international politics, climate change, and technological advancements. Warsh acknowledged the limitations of forward guidance during the financial crisis, as demonstrated by the inaccurate prediction of market impact from subprime market issues.

Similarly, the reliance on money supply as an irrelevant factor is questioned, given the post-pandemic price increases resulting from unprecedented monetary expansion. The economy is not a predictable machine, and prospective guidance can create a feedback loop, reinforcing central bank decisions based on its own statements. While demonstrating principles such as precise and timely data collection, understanding the necessity of low inflation for low unemployment, and using short-term interest rates as the primary monetary policy tool, Warsh believes that adhering to the 2% price stability objective is vital.

He emphasizes the importance of explaining the central bank's perspective on why its interest rate policy is suitable for achieving this goal, considering its economic understanding at the time.