Warsh Reiterates Inflation Warning at Jackson Hole
The US stock market held relatively steady on Friday after Federal Reserve Chairman Kevin Warsh emphasized that inflation remains too high in his highly anticipated speech at the annual economic symposium in Jackson Hole, Wyoming.
The S&P 500 was virtually unchanged in morning trading, while the Dow Jones Industrial Average rose by 59 points, or 0.1%, and the Nasdaq composite fell 0.2% as of 10:10 a.m. Eastern time.
The bond market reacted more strongly to Warsh's speech, with yields zigzagging in the minutes immediately after the text was released.
Warsh reiterated his stance that he wants financial markets to react to incoming data rather than Fed announcements, but he faced pressure to offer more clarity on whether his tough talk on inflation is accompanied by action. The Fed has kept its main interest rate steady since December despite high inflation.