American economist; President of the Peterson Institute for International Economics since 2013
Global central banks face renewed pressure as governments squeeze independence to manage debt, raising inflation risks and market volatility. Jackson Hole gathers policymakers amid debates on inflation, debt, and the boundary between fiscal and monetary power.
The United States faces rising government bond yields amid fears of a debt sustainability crisis. A recent intervention by Washington seeks to calm markets as inflation pressures persist, while AI-driven corporate debt adds to demand for risk-free Treasuries. Analysts warn that the debt trajectory could reshape global finance if policy paths remain unchanged.
Federal Reserve Chair Kevin Warsh has told the Jackson Hole symposium that recent inflation readings have not shown that underlying trends have meaningfully improved and that short-term rates remain the Fed's primary tool. Markets have pushed up Treasury yields and raised odds of a September rate increase as officials debate whether to tighten policy.