Warsh Keeps Fed's Interest Rate Stance Steady at Jackson Hole

The US stock market held steady on Friday as Federal Reserve Chairman Kevin Warsh delivered a speech in Jackson Hole, Wyoming. The S&P 500 was virtually unchanged in morning trading, while the Dow Jones Industrial Average rose 59 points or 0.1% and the Nasdaq composite fell 0.2%. Bond yields zigzagged after the release of Warsh's text.

Warsh emphasized that inflation remains too high, but he wants financial markets to react to incoming data rather than what the Fed says. He reiterated his stance on giving fewer clues about interest rates, which has been a subject of pressure from President Donald Trump and others who want lower rates.

The two-year Treasury yield jumped to 4.29% following Warsh's speech, while longer-term yields were mixed. The 10-year Treasury yield rose to 4.69%, but the 30-year yield fell to 5.17%. Analysts said the Fed's intervention in the bond market last week had a limited effect.