The 49th annual Jackson Hole Economic Policy Symposium, hosted by the Federal Reserve Bank of Kansas City, wrapped up on Saturday August 29 with a decidedly hawkish tone from new Fed Chair Kevin Warsh. July’s Personal Consumption Expenditures index came in at 3.3 percent, 1.3 percentage points above the Fed’s 2 percent target. Markets interpreted Warsh’s keynote on August 28 as a signal of tighter monetary policy: equities slipped, Treasury yields climbed, and the implied probability of a September rate hike rose to approximately 60 percent. Warsh also called for a less talkative central bank, moving away from the extensive forward guidance that has characterized the institution’s communications in recent years.
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