Warsh's Jackson Hole Speech: Will He Signal Rate Hikes?

Federal Reserve Chair Kevin Warsh is under pressure to signal whether interest rate hikes may return. He will address international economists and central bank leaders at the Jackson Hole symposium in Wyoming on August 28, where he will provide more detailed assessments of the economy, recent volatility in the bond market, and risks to the U.S. and global economies.

The key question is whether Warsh will maintain a restrained communication style on monetary policy or outline the general conditions under which he might support raising interest rates. Other Fed officials have recently spoken more openly about why inflation may require tighter policy, while Warsh has been hesitant to disclose his own guidance in detail.

Kansas City Federal Reserve Bank President Jeffrey Schmid, who is hosting the event in Jackson Hole, said that the current target range for the policy rate of 3.50-3.75% is not restraining spending and investment as much as would be necessary to slow inflation.