Warsh's Jackson Hole Speech Sends US Markets Lower

US stock markets closed slightly lower on Friday after Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole economic symposium.

The S&P 500 fell by 19.23 points, or 0.3 percent, to 7,711.76, while the Dow Jones Industrial Average dipped 9.45 points, or 0.02 percent, to 53,559.99.

The Nasdaq composite sank 138.93 points, or 0.5 percent, to 26,402.42 in reaction to Warsh's speech.

Warsh emphasized that 'short-term interest rates are the predominant tool' for the Fed to do its job, and stated that he would be hard pressed to describe broad financial conditions as restrictive, implying that short-term interest rates may not be high enough to control inflation.