Warsh Under Siege at Jackson Hole as Inflation Fears Mount

The Jackson Hole symposium is underway in Wyoming, and Kevin Warsh will make his debut as chair of the Federal Reserve. Despite his reluctance to spell out his strategy, expectations for his speech are running high.

In recent days, U.S. Treasury yields have climbed to levels not seen in two decades. Markets reacted with surprise and disappointment after Warsh's press conference at the end of July, when the Fed left interest rates unchanged without providing any clues on how it intended to bring inflation under control.

The pressure is intense for Warsh to provide a more decisive message than his previous communications have offered. Investors are looking for clear signals that the Fed will tackle elevated inflation, and a failure to do so could trigger further rises in bond yields.