The Fed is Openly Cheering the Stock Market Plunge Following Jackson Hole – Mish Talk

Neel Kashkari ‘Happy’ to See the Stock Market’s Reaction to Jackson Hole

Bloomberg reports Neel Kashkari ‘Happy’ to See the Stock Market’s Reaction to Jackson Hole

“I was actually happy to see how Chair Powell’s Jackson hole speech was received,” Kashkari said in an interview with Bloomberg’s Odd Lots podcast on Monday, reflecting on the steep drop after Powell spoke. “People now understand the seriousness of our commitment to getting inflation back down to 2%.”

“I certainly was not excited to see the stock market rally after our last Federal Open Market Committee meeting,” he said. “Because I know how committed we all are to getting inflation down. And I somehow think the markets were misunderstanding that.”

“One of the biggest mistakes they made in the 1970s at the Fed is they thought that inflation was on its way down. The economy was weakening. And then they backed off and then inflation flared back up again before they had finally quashed it,” Kashkari said. “We can’t repeat that mistake.”

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