In his inaugural Jackson Hole speech as Federal Reserve Chair, Warsh refuted the notion that inflation is caused by excessive worker wages, arguing instead that price pressures stem from government spending and money creation, rather than an overheated labor market. He emphasized that if this view holds true, the Federal Reserve would lose its traditional justification for raising interest rates when employment accelerates or wages grow. This redefinition is crucial for investors holding growth stocks, industrial stocks, and bank stocks.