Warsh Set to Deliver Clarity on Fed's Inflation Response
New Federal Reserve Chair Kevin Warsh is expected to draw intense scrutiny after his speech at the central bank's annual Jackson Hole symposium, according to the Associated Press.
Warsh has kept a lower profile than his predecessors, but economists and Wall Street analysts are looking for clarity on how he thinks the Fed should respond to ongoing price increases that have dampened consumer sentiment.
In July, Warsh's press conference left markets uncertain about his willingness to raise interest rates to address persistently high inflation, which led to rising longer-term borrowing costs.
The AP notes that most analysts expect the Fed to hold rates steady at its mid-September meeting, though futures markets indicate a possible hike by December. Inflation cooled in June and July after a spike in May, but remained at 3.7% in July, above the Fed's 2% target.