Warsh Warns: Inflation Trumps Labor Market Concerns
Federal Reserve Chair Kevin Warsh emphasized the importance of price stability in his speech at the Central Bank Symposium in Jackson Hole, Wyoming. He stated that inflation is a bigger concern than a slowing labor market, citing that the Fed's preferred measure of inflation stands at 3.7 percent and the six-month change is 4.1 percent.
Warsh noted that while the labor markets are consistent with full employment, there are areas of concern in the labor market, such as among recent graduates. However, he emphasized that on the price-stability side of their mandate, the numbers are more concerning.
The gold market is seeing significant selling pressure following Warsh's comments, with prices dropping well below $4,600 an ounce. Spot gold last traded at $4,552.00 an ounce, down more than 1% on the day.