Kevin Warsh gets what every Fed chair hopes for: a bond market that trusts his word

Kevin Warsh, the new Federal Reserve chairman, said that inflation is still too high and that the central bank may have to raise interest rates in the coming months to bring it down. According to Fortune, he made these comments during his first high-profile speech at the Fed's annual conference in Jackson Hole, Wyoming.

Warsh acknowledged that recent US reports show that inflation has cooled a bit, but he added that "they do not tell me that underlying trends have meaningfully improved." He emphasized that the Fed must be confident that underlying inflation is moving to its objective, "clearly and at sufficient speed," otherwise "we have work to do."

The bond market reacted to Warsh's comments, with the yield on the two-year Treasury moving from 4.22% to 4.30%, according to Fortune. This suggests that investors expect the Fed to hike interest rates. Channel News Asia and Fortune reported that Warsh's comments reassured investors that fighting inflation remains the Fed's main priority.

Brief written by urgent.news from MarketWatch Top, MarketWatch, Le Monde Economie, Fortune, Channel News Asia — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.