Warsh Keeps Markets Guessing with Tight-Lipped Approach

New Fed Chair Kevin Warsh will address the Federal Reserve's annual economic symposium in Jackson Hole, Wyoming for the first time as chair. The markets would love to hear some certainty from Warsh on Friday, but he may not provide it.

'He's definitely holding things close to his chest,' said Stephen Kates, a certified financial planner and the principal at Clocktower Financial Consulting.

Warsh has been reluctant to comment too much on how the Fed might handle interest rate decisions and other monetary policy. He told reporters that he was approaching the Jackson Hole speech as a 'blank piece of paper', indicating that he may not make any groundbreaking announcements.

Kates said consumers shouldn't expect any 'groundbreaking' announcements in Warsh's Jackson Hole speech, and added that Warsh has made it clear that he wants nothing to do with forward guidance. This tight-lipped style has added tension to bond markets, where long-term Treasury yields have risen in recent months.

Kates also noted that other forces are pushing up yields, including inflation concerns and growing government and corporate debt issuance.