Kelley Gerrity, fixed income portfolio manager at Morgan Stanley Investment Management, warned that investors could be disappointed by Kevin Warsh’s keynote at the Jackson Hole symposium on August 27. The Federal Reserve faces inflation above its 2% target and elevated Treasury yields, against an already tense backdrop following the massive bond market selloff on July 29. Warsh, who took office as Fed Chair on May 22, favors broad themes over tactical guidance, a communication style that already triggered a negative market reaction during his last major public appearance. Treasury Secretary Scott Bessent announced long-term Treasury buybacks around August 21 to lower yields, but Warsh is not expected to address this initiative, leaving uncertainty about coordination between monetary and fiscal policy.
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