Bloomberg Surveillance · Thursday, September 3, 2026
Michael Darda discusses Fed Chairman Warsh's Jackson Hole speech, noting an analogy about monetary policy hikes that markets interpreted as a potential shift in the committee's consensus. Darda believes this could lead to increased Fed tightening expectations.
“Well, Paul, you probably also noticed that he started his talk with an analogy about taking hikes with different monetary luminaries. There was a Donald Cohen hike, which was a you know, one that would, you know, potentially take you to the brink of death. And then the Bernanke hike, which was much more leisurely. I mean, you know, markets, you didn't, you know, the subtlety wasn't lost on the market. And so you had those Fed tightening expectations push back up over 50%.”
“And, you know, it could simply be that the consensus of the committee has shifted, right? Now, under the feet of the new chairman. And is he going to is he going to take a vote where he's outvoted by.”