Warsh Stays Mum on Interest Rates Amid Inflation Concerns

Federal Reserve Chairman Kevin Warsh broke from tradition by not signaling interest rate changes at his speech in Jackson Hole, Wyoming. Inflation is the biggest problem for the Fed, but investors will have to figure it out on their own, he said.

The US economy is at full employment, according to Warsh, but inflation figures are more concerning. This marks a break from his past practice of providing guidance in his keynote address at the Federal Reserve Bank of Kansas City's annual economic symposium.

A CNBC survey of 31 economists and investors showed that 80% want Warsh to explain his economic views in more detail, but he defended his decision not to provide a 'reaction function' or forward guidance. The bond market is looking for clues on how the Fed will respond to inflation, said Ian Kresnak, senior investment strategist at Vanguard.