Warsh Faces Credibility Test Amid Rising US Inflation
The latest inflation data from the US has revealed that consumer prices rose at an annualized pace of 3.7% in July, nearly double the Federal Reserve's target. This marks the 65th consecutive month that the central bank has missed its inflation goal.
New Fed Chairman Kevin Warsh faces a credibility test as he delivers his first major speech since taking office at the Jackson Hole symposium this week. Analysts and investors expect him to address whether current inflation is a problem and what policy actions might be warranted.
EY-Parthenon chief economist Gregory Daco has criticized Warsh's initial remarks, saying that he is avoiding discussion of rate hikes to appease the president or to support Treasury Secretary Scott Bessent's efforts to lower borrowing costs.