Fed Chair Kevin Warsh Expresses Concern Over Inflation at Jackson Hole Symposium
In his speech at the Jackson Hole Economic Symposium on August 28, Federal Reserve Chair Kevin Warsh signaled continued concern about inflation. He emphasized that underlying trends remain worrisome and stated, 'We have work to do' if inflation does not move toward the Fed's target quickly enough. Warsh noted that while recent Personal Consumption Expenditures (PCE) and Consumer Price Index (CPI) data were better than expected, they did not indicate a meaningful improvement in underlying trends. He highlighted that over half of PCE components showed price increases above 3% year-over-year, significantly higher than pre-pandemic levels. The market reacted swiftly to the speech, with the probability of a September rate hike rising from about 35.5% to 57.5%. However, Warsh's stance remains fluid and subject to further data developments.
Topics: Federal Reserve inflation interest rates Jackson Hole speech