Warsh Faces Pressure to Condemn High Inflation at Jackson Hole

Investors are urging Federal Reserve Chairman Kevin Warsh to address high inflation in his upcoming speech at Jackson Hole, Wyoming. A clear commitment to price stability could trigger buying of 30-year US government bonds and lower yields, which have been above their highest level since 2007.

JPMorgan Chase & Co., Apollo Global Management Inc., and Morgan Stanley say Warsh's speech is a pivotal test for the Chairman, who has evaded communication on inflation concerns. Investors are skeptical about the Fed's dedication to controlling price growth, given that US inflation has exceeded the 2% target for five years.

Priya Misra, a portfolio manager at JPMorgan Investment Management, believes that Warsh can convince the market of his priority on managing inflation, which would reduce 'angst on Fed credibility.'