Warsh Refuses to Signal Interest Rate Moves in Key Speech

Fed Chairman Kevin Warsh is set to deliver his keynote speech at the Federal Reserve Bank of Kansas City's annual economic symposium in Jackson Hole, Wyoming. Investors are expecting him to break from tradition and not provide clues on interest rates, a move that might not sit well with them.

Since becoming chairman three months ago, Warsh has stopped providing Wall Street with hints about what the US central bank will do next. Meanwhile, inflation has risen higher and some of his colleagues are already calling for raising borrowing costs for the first time since July 2023.

Jean Groen, chief US economist at global financial firm Societe Generale, said he doesn't expect any signals to come out of Warsh's speech. If he is right, it will be clear that investors will have to live with less guidance.