Warsh Signals Inflation Concerns, Leaving Rate Hike Uncertainty

Fed Chairman Kevin Warsh has broken tradition by not signaling interest rate changes in his remarks at Jackson Hole, Wyoming.

Warsh stated that inflation is the Federal Reserve's biggest problem and that the economy is at 'full employment,' but he did not provide any clarity on when officials will step in to address inflation.

This move reinforces Warsh's shift towards a quieter Fed with more purposeful communications, which has left traders trying to figure out how to operate in this new era.

'A quieter Fed, more purposeful in its communications, is better able to meet its objectives,' Warsh said.