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This is the Bloomberg Money podcast. I'm Tom Keane with Scarlett Fu. Join us each week for a smart look at the forces shaping your financial life on personal finance, on retirement, and wealth management. We will explore how people are earning, investing, and building wealth. We are live Fridays at noon Eastern on Bloomberg television. Subscribe to the podcast wherever you listen and as always on the Bloomberg terminal and the Bloomberg Business app.

Good everyone. It is Friday which means this is Bloomberg Money. We cover personal finance, retirement, and wealth management. I'm Scarlett Food. Tom Keen is out in Jackson Hole, Wyoming, where Federal Reserve Chair Kevin Worsh delivered his first speech as the US central banker. So, let's head straight out to Tom out in Wyoming. Tom, I know you've been out there sitting in the cold for a while. Did Worsh silence critics and provide clarity

a little bit? The the clear tone here is a more restrictive Fed. We'll talk to Ender Curran about that. I have to say that in terms of Bloomberg money, this is the land of Bloomberg money, Scarlet. It's about personal finance, retirement, wealth management. I'm the youngest person in Jackson Hall. Everybody else is 80 years old and retired, so it's perfect for Bloomberg money this morning. Coming up, Scarlet Kenneth Rogoff, Harvard University.

All right, looking forward to that conversation. And also later in the hour, Neil Richardson, chief economist at ADP, will be here with us to talk about Bloomberg Money's dual mandate, how we make money and how we save and spend money. So, first, let's get a check on where things stand in the markets and how markets have responded to that speech from Kevin Walsh. We saw the short end of the bond market react immediately.

Price down, yield up, up eight basis points right now. This is the tenor most sensitive to Fed policy. Traders pricing in higher odds of a rate hike in September. Uh we saw the 10-year yield make some big moves, but right now not doing a whole lot. The dollar moving higher with short-term rates and oil prices down about 3/4 of 1%. But here's the big mover of the morning. You could see the 2-year yield shooting up after the text of Worships speech was released at 10:00 a.m.

Eastern time. That was a 10 basis point move from trough to peak. Worsh making clear that recent CPI and PPI data were not entirely encouraging. All right, let's move on to equities here. Um stocks getting a little bit of a lift initially but have now uh settled down into mixed territory. What gets my attention is the VIX uh slightly elevated but still in the 14 and a half range below 15. All right, let's go back to Tom in Jackson Cole.

He is with one of our reporters there in Wyoming, Enda Currin. Tom,

Scarlett, thanks so much. I needed that data check, Scarlet, cuz I spent the last 30 minutes in the Pioneer Grill just getting breakfast done the way it can only be done at Jackson uh hold. There's been a lot of feedback. You see the two-year yield move higher here, and there has been an international response. We are so fortunate at Bloomberg to have driving all of our Federal Reserve coverage and to Curran who spent the pandemic hold up in Hong Kong.

He knows international economics better than anyone here uh at Bloomberg. How did the international community, how would you guess they did or they will respond to the war speech?

I think the speech is being wellreceived, Tom. It's been seen as clear on some critical points. The chairman's views on inflation, which is that he's obviously concerned. He made that clear. The chairman made clear that if they don't see prices going back to the target at speed, then they have work to do. That's code for obviously raising raising interest rates. And he made clear the tool, the near-term tool they have to control inflation is short-term interest rates.

So, it was a hulkish message. Of course, it sets it up for how he now delivers on that.

Just as an aside, when New Zealand raises rates, do they raise rates to get out in front of a raising rates? Chairman Walsh,

sometimes it depends on the cycle. Sometimes central banks try to get get ahead of the Fed. You could argue this time around maybe the Fed has been accused of being behind the curve because other central banks have hiked during the past year since we've had the energy crisis, for example. But the Fed not not there yet, but certainly nudging towards that direction.

You've got the cushy job here. Chris An's actually working for a living with our Federal Reserve coverage paragraph by paragraph. Which paragraph caught your attention?

I think the most important one was where he said if inflation doesn't slow down quickly enough to their liking, then they have work to do. So, he's making a

he actually mentioned some calculus, the second derivative.

He did. It was a long speech. It's something of a road map, but I think it's probably his most clearest explanation yet of how he's seeing the economy, how he's thinking about monetary policy, how he's thinking about inflation. But again, Tom, the point is all of that's fine. It undoes some of the uh fallout from his press conference in July. Question now is okay just what are you going to do about it? How will you deliver in in the months ahead?

The way we built Bloomberg economics and our Federal Reserve coverage foundationally around Rick Mitch Martin and Craig Taus and others and now you take over the mantle as well. Do we have a clue how the presidents and governors voting and non- voting reacted to this speech? What will be the character of dcent forward? Well, I think the view certainly upstairs Tom after speech was broadly broadly speaking well received.

That's from officials and academics and the like. The speech has gone down well because it's kind of course corrected after what happened in that July press conference in the bullmark reaction. But going forward, as I say, that's now done. Now it's all about the next set of inflation data for the month of August. And let's just say if that comes in on the on the hot side, how are policy makers going to respond? I think it's it s