Warsh Faces Pressure at Jackson Hole as US Economy Teeters on Edge

The Federal Reserve's annual economic policy symposium at Jackson Hole is about to kick off, and this year it comes with a lot of weight. The Kansas City Federal Reserve will host the event on Thursday, focusing on 'Financial Innovation and the Implications for Payments and Policy'. But all eyes are on Fed chief Kevin Warsh as he takes the stage for his first major public address since July's press conference, which was met with criticism from economists.

Warsh's speech has been highly anticipated, as investors have been jittery about US inflation and record-high debt levels. Treasury Secretary Scott Bessent even intervened in the market last week to calm concerns. The collapse of a trade deal between the US and Canada also adds to the sense of uncertainty.

A recent poll by the FT found that over 60% of respondents think it will take longer than expected for inflation to fall back to the Fed's 2% target, citing the Iran war as a major concern. The poll also showed that most economists thought Warsh was performing in line with expectations, but his actions so far have been criticized for not doing enough to explain the US economy and how the Fed should respond.

Meanwhile, Britain's Prime Minister Andy Burnham is visiting Ukraine, pledging to support Kyiv in its war with Moscow. This move is likely to inflame tensions between the UK and Russia.