Federal Reserve Chairman Kevin Warsh said Friday at the annual Jackson Hole symposium that recent inflation readings, while better than expected this summer, do not demonstrate a meaningful improvement in underlying trends. He warned that interest rates may need to rise if inflationary pressures do not ease sufficiently, while calling forward guidance a market practice that has ‘overstayed its welcome.’ Warsh, marking his 100th day as chairman, announced five task forces to review Fed operations. After his speech, stock markets remained flat while US Treasury yields moved substantially higher. Unlike his predecessor Jerome Powell, who had signaled rate cuts at last year’s event, Warsh refused to commit to an explicit reaction function.
Source: Read the original article
