Welcome to a special edition of Squawk on the Street.

I'm Sarah Eisen with Carl Kintanilla.

David has the morning off.

Moments away, the event Wall Street has been waiting for all week long.

A highly anticipated speech from Fed Chair Jay Powell in Jackson Hole, Wyoming, will take you live as soon as it kicks off.

But first, former PIMCO chief economist Paul McCulley is with us.

Paul, it's great to have you on a day like today.

I mean, tough spot for the Fed chair.

He's dealing with a ton of political pressure and attacks from the president.

Some serious accusations currently swirling at this moment around one of his Fed governors and a real policy dilemma with upside and downside risks all around his mandate dictating different ideas on policy. What do you think he's going to do?

I think all of that's true. This really is the world series of global monetary poker today.

We're waiting for him to turn over the cards. And I think that he's going to de facto confirm that recalibration 2.0 is going to start in September.

So I think he may not say it explicitly,

but they're going to start the easing process

or restart the easing process in September.

I think we'll get that out of the speech.

But I think he's going to have a fair amount of ambiguity

about the contours of what happens afterward.

The market's pricing essentially recalibration, 2.0 will be about 100 paces points.

The same thing is the last.

And I think that's right.

But I doubt he'll pound the table on that.

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