Warsh Set to Deliver High-Stakes Inflation Speech

Federal Reserve Chairman Kevin Warsh is set to deliver a highly anticipated speech at the annual gathering of economists and policymakers in Jackson Hole, Wyoming. The stakes are high as investors await clarity on his strategy to curb stubborn inflation.

Last month, Warsh promised to bring prices under control but offered few details. Investors are now hoping for more specificity from his address on Friday. 'I'd like to hear him be a bit more communicative,' says Kathy Bostjancic, chief economist at Nationwide. 'We're not talking forward guidance. Just some understanding of how he views the inflation dynamics right now.'

Prices have been climbing significantly faster than the central bank would like, 3.7% in the 12 months ending in July, according to the Fed's preferred yardstick. This is down slightly from the 4.1% reading in May but well above the Fed's 2% target.