Hensarling Slams Warsh's Jackson Hole Speech as 'Inadequate'

Former House Financial Services Chair Jeb Hensarling has reacted to Federal Reserve Chair Kevin Warsh's speech at Jackson Hole. According to Hensarling, a sign of success would be if markets can independently analyze economic data and predict the Fed's reaction function without needing to listen to every word from the chair.

Hensarling believes that forward guidance should be eliminated but was disappointed that Warsh failed to fill the void left by its removal. He thinks that Warsh had an opportunity to fully embrace monetary policy rules but did not do so, instead only acknowledging and praising them.

Despite some encouraging statements from Warsh, Hensarling notes that there is still uncertainty around the Fed's reaction function. He hopes for a day when markets can clearly predict the Fed's actions without needing to listen to every speech from the chair.