Warsh Seeks to Reassure Investors Amid US Economic Strains

U.S. Federal Reserve chair Kevin Warsh is set to address investors and central bankers at the annual Jackson Hole symposium in an effort to reassure them about the state of the economy.

Warsh has taken a more restrained approach to communicating economic policy, drastically reducing guidance on future interest rates since taking office.

The move has been met with criticism from some investors, who say it reduces the credibility of the Fed's guidance. Some have also pointed out that inflation has been running above the Fed's two per cent goal for over five years, and that recent events such as the conflict between Tehran and Washington could add to upward pressure on prices.

According to a poll of academic economists conducted by the University of Chicago's Booth School of Business, nearly 60 per cent said it would take longer for the Fed to get back to its two per cent target than when Warsh was confirmed as Fed chair in mid-May.