Bloomberg Surveillance · Monday, August 31, 2026
Bob Elliott of Unlimited Funds expressed skepticism regarding Fed chair Kevin Walsh's Jackson Hole message, suggesting policy "ineptitude" rather than hawkishness. Elliott argued that despite inflation exceeding mandates and acceptable employment conditions, the Fed appears hesitant to implement necessary rate hikes, leading to a credibility gap with the market.
“while the Walsh speech was taken as a tad hawkish, it looked more like continued policy ineptitude, relying on rhetoric rather than clear action.”
“And I agree with this basic idea that maybe he's boxed himself in, in terms of if you've missed your target for 60-plus months— and inflation is above what your mandate is by a lot, and the employment conditions are not so bad, it seems like they should hike.”
“The market is looking at this and saying, is this a Fed that's actually credible in delivering the tightening? Or is this, as they say out West, all hat and no cattle from the new Fed chairman?”