Fed Chair Warsh to Deliver First Jackson Hole Speech Friday
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Federal Reserve Chair Kevin Warsh will deliver his first keynote address at the Kansas City Fed's annual Economic Policy Symposium in Jackson Hole, Wyoming, on Friday. Investors are seeking clarity on how the central bank will respond to stubborn inflation. The speech comes as long-term Treasury yields remain near a two-decade high.
Key Facts
- The speech is scheduled for Friday at the Kansas City Fed's annual Economic Policy Symposium in Jackson Hole, Wyoming.
- Long-term Treasury yields climbed to a two-decade high after Warsh's July policy meeting comments.
- Economists estimate the PCE price index rose 3.6% in July from a year ago, the smallest annual increase in four months.
- Warsh has created five task forces to review key aspects of the Fed's inner workings, including one on communications.
The Speech
Kevin Warsh will offer keynote remarks at the Kansas City Fed's annual Economic Policy Symposium for the first time as leader of the world's top central bank. The event takes place in Jackson Hole, Wyoming, on Friday. Investors are looking for Warsh to clarify his views on how the US central bank should react to stubborn inflation. It is not entirely clear he will deliver that clarity.
Market Pressure
After the July policy meeting, Warsh offered little insight on his views of the economy and avoided offering forward guidance on interest rates. Investors interpreted his comments as showing a lack of resolve to bringing inflation back to target, and long-term bond yields subsequently climbed to a two-decade high. With Treasury yields still elevated by sticky inflation and fiscal deficit concerns, Warsh is under pressure to act more like his predecessors and give clearer guidance of how the Fed might react over the remainder of the year. Five task forces created by Warsh are now reviewing key aspects of the Fed's inner workings, including one on communications.
Inflation Data
On Wednesday, the government will issue the latest personal consumption expenditures price index, the Fed's preferred inflation gauge. Economists estimate the PCE price index rose 3.6% in July from a year ago. That would be the smallest annual increase in four months. Oil prices have been rising again this month as the Iran war drags on.
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Fed Chair Warsh to Deliver First Jackson Hole Speech Friday
