Warsh Faces High Stakes as He Prepares to Address Inflation Concerns

Fed Chairman Kevin Warsh is set to deliver his first major speech at Jackson Hole on Friday, and investors are eagerly awaiting clarity on his strategy to curb stubborn inflation. Prices have been climbing significantly faster than the central bank would like, with a 3.7% year-over-year increase in July.

Warsh has promised to bring prices under control, but has offered few details so far. Economists are hoping for more communication from him on Friday, particularly on how he views the current inflation dynamics.

Brendan Smialowski/AFP hide caption Brendan Smialowski/AFP toggle caption Brendan Smialowski/AFP Federal Reserve Chairman Kevin Warsh is set to deliver a keenly awaited speech on Friday at the annual gathering of economists and policymakers at Jackson Lake Lodge in Wyoming, and the stakes are as high as the surrounding Teton mountains.

Investors were disappointed last month when Warsh promised to curb stubborn inflation but offered no specifics about his strategy. Many are hoping for more clarity on Friday at a gathering that Fed chairs have traditionally used to reach a wider audience with their thoughts about the economy.