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It’s Jackson Hole time! As he prepares to deliver his first keynote address as Federal Reserve Chair, Kevin Warsh faces a delicate balancing act: how to navigate a remarkably high and varied set of expectations. On one side are those who want him to follow his predecessors’ tradition of detailing his immediate "reaction function" alongside forward guidance. On the other are those who hope he returns to the original secular spirit of this unique gathering. This would mean focusing on a growing, complex set of domestic and policy issues at a time of deep structural transformation driven by both technological innovation and geo-economics. It is a balance that is (i) difficult to strike, (ii) almost certain to leave some unsatisfied, (iii) complicated by non-Fed policy considerations, and yet (iv) bound to tell us a lot about the new Chair. FWIW, I hope that he tilts more towards the longer-term secular side, especially given the current division among his FOMC colleagues. #economy #markets #federalreserve #jacksonhole