Warsh Faces First Major Policy Test at Jackson Hole

The Jackson Hole Economic Policy Symposium has opened in Wyoming, attracting top central bank governors and economists. This year's event is closely watched for signals on future policy direction from Federal Reserve Chair Kevin Warsh.

Warsh's keynote address on Friday will mark his first appearance at the symposium since taking office in May. Market observers say his early-tenure 'honeymoon period' has ended, and a real policy test has begun.

The Fed chair has signaled that he wants to limit forward guidance on future rate paths in the Fed's communications with markets. However, critics argue this approach has heightened market uncertainty.

The most closely watched question heading into Friday's speech is how Warsh diagnoses the current elevated level of inflation. US inflation remains above the 2 percent target, driven by energy costs and trade tensions.