First Thing: New Fed chair Kevin Warsh faces early test amid bond market worries
Key speech to be delivered this week at Jackson Hole said to focus on productivity and demographics in the US. Plus, how do you vaccinate 1,000 little penguins in the wild? Good morning. The new US Federal Reserve chair, Kevin Warsh, faces a critical test this week amid anxiety in government bond markets over inflation and Donald Trump’s tax and spending plans. As the world’s most powerful…
New Federal Reserve chair Kevin Warsh is facing an early test this week due to concerns in government bond markets regarding inflation and Donald Trump's tax and spending policies. As the Federal Reserve prepares for its annual Jackson Hole conference, analysts predict bond traders will be seeking indications from Warsh about the central bank's commitment to combating inflation.
However, Warsh has indicated he intends to steer clear of the "conventional setup" of hinting at potential interest rate adjustments at the September and December meetings when officials decide on policy moves. Instead, he has hinted his speech could zero in on "bigger questions," such as productivity and demographic trends. This marks a pivotal moment for the Fed, as the Jackson Hole gathering is a major financial event on the calendar.
The meeting occurs amidst mounting sell-offs in the $30tn US government debt market, despite the Treasury secretary's pledge to quadruple Washington's bond purchases. Joshua Aviles expressed his anguish over his father's arrest by ICE, citing the emotional toll of his military service and the family's ongoing struggles to secure his legal status.
The Department of Homeland Security maintained that Aviles Roa entered the US unlawfully and will face removal proceedings.
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