Bloomberg Surveillance · Thursday, September 3, 2026
Lauren Moran states that Wellington Management viewed Fed Chairman Warsh's Jackson Hole comments as necessary, believing he corrected communication missteps from the July meeting. She notes the bond market's positive response and emphasizes that financial conditions remain easy, with nominal growth over 6-7% and an expectation of sub-4% unemployment by year-end.
“So, you know, Wellington's thought of that is this was what was needed, was more orthodox return in terms of Warsh correcting a little bit of the communication missteps from the July meeting. And I think he did an excellent job doing so. Obviously, the bond market's been very responsive to that. I think it's a question now of what do we do going forward? The comments on the tape this morning draw a little bit of a question in terms of whether the Fed is willing to hike in September. I think when we look at financial conditions, as Chair Warsh highlighted, are clearly easy, definitely not tight here. We have nominal growth over 6%, 7%. And continued move in unemployment, which I think there's a lot of skepticism, but our expectation at Wellington is we end the year sub 4% unemployment.”