Warsh's Credibility on Line as He Prepares to Address Inflation Concerns at Jackson Hole

Fed Chairman Kevin Warsh is under pressure to provide clear guidance on monetary policy at the upcoming Jackson Hole symposium, where he will deliver a keynote address.

Warsh's willingness to explain his framework for thinking about price stability has been called into question by investors, who have signaled their desire for more explicit communication from the Fed.

Markets have been roiled in recent months by the Fed's decision to maintain a 3.50%-3.75% target range for the federal-funds rate, despite rising inflation and dissent among Federal Open Market Committee members.

PIMCO's Richard Clarida notes that 'it will be important for the chairman to provide at least some insight into his own personal framework for thinking about achieving price stability.'