Kevin Warsh bolsters Fed's credibility in face of Donald Trump at Jackson Hole
In his speech to monetary policymakers gathered in Wyoming, the chair of the US Federal Reserve (Fed) made clear that fighting inflation was his top priority, suggesting that an interest rate hike was on the horizon.
Federal Reserve Chair Kevin Warsh has emphasized that fighting inflation remains the central bank's top priority. In a speech to monetary policymakers in Wyoming, Warsh suggested that an interest rate hike may be on the horizon. He stated that without confidence that inflation is heading clearly and with sufficient speed to the Fed's 2 percent goal, the central bank would have "more work to do."
According to the Straits Times Business, Warsh's comments led traders to add to bets on a September rate hike. The outlet also reported that traders are now split between a rate hike and a hold in September, following mixed inflation data in August. Mark Hackett, chief market strategist for Nationwide, noted that Warsh's speech was consistent with his hawkish stance, but not incrementally so.
The bond market reacted to Warsh's speech, with investors turning cautious and Wall Street's main indexes ending lower on August 28. MarketWatch reported that Warsh passed another big test as a new Federal Reserve chairman, reiterating the central bank's focus on fighting inflation.
Brief written by urgent.news from Le Monde English, Straits Times Business, MarketWatch Top, MarketWatch, Le Monde Economie — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.
