The implications of Fed Chair Kevin Warsh’s Jackson Hole speech are pretty clear: Traders expect a rate hike given the hawkish hints littered in his address, largely focused on inflation. There are still a number of open questions and Warsh’s lack of forward guidance does not exactly lend clarity to how the Fed will act in the coming months. Today, we recap the speech — in a conversation recorded from the Lodge at Jackson Hole — with Richmond Federal Reserve Bank President Tom Barkin and he explains how the real economy remains resilient despite monetary policy uncertainty.

He emphasizes that while inflation remains a concern, underlying economic fundamentals show strength, particularly in labor and consumer spending. Barkin notes that the Fed must balance price stability with avoiding unnecessary damage to growth, and that data dependence will guide future decisions. He also highlights the importance of clear communication to manage market expectations amid ongoing volatility.