Warsh's Jackson Hole Speech: Will Markets Get Clarity on US Monetary Policy?
Investors will be keeping a close eye on a speech by new Federal Reserve chair Kevin Warsh at the Jackson Hole Economic Policy Symposium in Wyoming, but may not get the clear guidance they're looking for. The event takes place on Friday and comes after a quiet week with no major UK corporate or macro news.
Warsh has been tight-lipped about his views on the US economy, and Neil Wilson, UK investor strategist at Saxo Markets, notes that he 'won't tolerate high inflation' yet the Fed has missed its inflation target for years. The current trends don't suggest inflation will come down soon, adding to the uncertainty.
The Jackson Hole speech is seen as a chance for Warsh to set the tone for future monetary policy, but Wilson believes it's unlikely he'll provide much colour at this event. Instead, the September FOMC meeting may be the more opportune time for clear guidance.