Warsh Signals Hawkish Tone at Jackson Hole Economic Symposium

The annual Jackson Hole Economic Policy Symposium kicked off in Wyoming on August 28, 2026. US Federal Reserve Chairman Kevin Warsh delivered the keynote address, focusing on inflation and the rate outlook.

Warsh emphasized that price stability is the Fed's top priority, as inflation remains above the 2% target. The July PCE index rose 3.7% year-on-year, while core PCE held at 3.3%. Despite this, Warsh painted a resilient picture of the US economy.

Markets broadly interpreted Warsh's speech as hawkish. Padhraic Garvey, America's regional head of research at ING, noted that Warsh 'was keen not to provide forward guidance, but his words smacked of forward guidance; he was net hawkish.'