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Mark Sobel shares his perspective on Kevin Warsh's appearance at Jackson Hole, highlighting Warsh's engagement with economic data and the ongoing debate around forward guidance and reaction functions.
Sobel also notes Warsh's reflections on artificial intelligence as well as his avoidance of the complex topic of the U.S. Treasury, which Sobel refers to as the 'elephant in the room'.
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Sobel has previously challenged claims about depleted Exchange Stabilization Fund resources, stating the ESF still holds dollars for yen intervention in a recent note here. He also reported that G3 and G7 official FX interventions are aimed at addressing disorderly market conditions, rather than altering policy or generating profits here. These earlier comments provide additional context to his latest observations.