Warsh to Speak on Fed Role as Trade Deficit Hits Record High

A speech by Kevin Warsh at the Jackson Hole symposium has markets on edge as investors await his views on how he sees the Federal Reserve's role in fighting inflation. The US Treasury seems to be undermining the Fed, and Warsh's comments will be closely watched.

The US trade deficit rose to a record high of $119 billion in July, up from $101 billion in June. Exports fell while imports rose, leading to concerns about over-stocking and potential price pressures.

Meanwhile, the Kansas City Fed factory survey shows continued expansion, but with rising input costs outpacing selling prices. The US Treasury 7-year bond auction saw a median yield of 4.46%, higher than last month's equivalent event.