Federal Reserve Chair Warsh's Press Conferences Leave Markets Uncertain on Interest Rate H
-
Warsh's first pair of press conferences as Fed chairman left many in the markets uncertain about where he stood on the path of interest rates, prompting bond traders to sell off long-term debt to account for the uncertainty. At a closely watched speech in Jackson Hole, Wyoming on Friday, Warsh showed he had heard those critics. He came as close as he is ever likely to do to indicating he is on the precipice of raising interest rates if inflation doesn't improve, based on his own idiosyncratic reading of price data.
Compare 10 other versions
New York Post BusinessFederal Reserve Chair Kevin Warsh said Friday there may be “work to do” on inflation, though he again danced around his outlook on interest rates during a closely-watched speech at the central bank’s annual Jackson Hole, Wyo., retreat.
FortuneIn his first high-profile speech at the Fed’s annual conference in Jackson Hole, Wyoming, Warsh acknowledged that recent U.S. reports show that inflation has cooled a bit, but “they do not tell me that underlying trends have meaningfully improved.”
MarketWatchKevin Warsh passed another big test as a new Federal Reserve chairman on Friday: He said the central bank still has work to do on inflation, and the bond market took him at his word.
BloombergWarsh Makes Big Promises at Jackson Hole, Experts React Bloomberg's Tom Keene, Lisa Abramowicz, and Michael McKee spoke with a number of financial experts on the sidelines of the Jackson Hole Economic Symposium in Wyoming on Friday, where they broke down the speech from Federal Reserve Chairman Kevin Warsh. In his first appearance as chair from the annual gathering, Warsh said if inflation doesn't meaningfully slow down, policymakers have "work to do." (Source: Bloomberg)
Epoch Times BusinessFederal Reserve Chairman Kevin Warsh is cautious about elevated underlying inflation trends, teasing that higher interest rates could be on the table in the coming months.
ZeroHedgeAs described in our Jackson Hole preview (here) Warsh’s address, scheduled for 10 a.m. New York time, is shaping up as a crucial moment for markets as doubts about his commitment to taming inflation have helped push up long-term yields. A divided policy committee and the Treasury’s bond market intervention are further complicating the backdrop.
BBC BusinessFederal Reserve chairman Kevin Warsh said while inflation readings looked better than expected over the summer, they did not show that the current picture had "meaningfully improved".
Financial TimesWarsh says Fed will have ‘work to do’ if inflation does not fall soon Central bank chair signals rising concerns over persistently elevated price increases
RealClearMarketsAgainst the backdrop of the majestic Grand Teton mountains, Kevin Warsh will deliver a speech next week that is likely to have a profound impact on his term as chairman of the Federal Reserve and the credibility of the central bank. Read Full Article »
Politico EconomyWill Kevin Warsh Squander a Huge Opportunity? The new Fed chair will have the spotlight at the central bank’s high-profile conference in Jackson Hole. He should use it.
-
What traders and Fed-watchers want instead is “vol-reducing: marginally hawkish near term, but fundamentally calming.”
-
“Here is my standard: We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,” Warsh said. “Otherwise, we have work to do. That’s our job … our mandate … and our charge to keep.” This is a developing story. Please check back for further updates.
Compare 4 other versions
New York Post Business“Here is my standard: We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,” Warsh said. “Otherwise, we have work to do. That’s our job … our mandate … and our charge to keep.”
Fortune“We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,” Warsh said. “Otherwise, we have work to do.”
BBC Business"Here is my standard: We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do."
CNBCHe added, "We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That's our job . . . our mandate . . . and our charge to keep."
-
Inflation cooled in June and July after spiking in May from soaring gas prices, yet it remains above the central bank’s target. According to the Fed’s preferred measure, it was 3.7% in July.
Compare 1 other version
New York Post BusinessIn July, inflation hit 3.4% – down from levels above 4% in May but still stubbornly above the Fed’s 2% goal.
-
Wall Street investors now see the chances of a rate hike at the Fed’s Sept. 15-16 meeting as basically a coin flip, according to futures pricing tracked by CME FedWatch, up from about one-third before Warsh spoke.
Compare 1 other version
New York Post BusinessAhead of Warsh’s speech, traders saw 35% odds that the Fed issues a quarter-point rate hike at its September 16 meeting, according to CME FedWatch.
-
His tone was firm: “We should not indulge a regime in which market participants are looking primarily to the Fed for their next trade.”
Compare 1 other version
CNBC"The Fed plays an essential role in the economy and the markets. And our tools are powerful. We determine the path of short-term interest rates. And market participants will always try to anticipate what we will do next," he said. "But we should not indulge a regime in which market participants are looking primarily to the Fed for their next trade."
-
Traders anticipate that the central bank chief will discuss artificial intelligence (AI), economic productivity, the 2008 Global Financial Crisis, the monetary policy task forces, the payment system, and Fed independence, according to Polymarket.
Compare 1 other version
FortuneThe boomerang central banker hit on the topic early, but with questions rather than expectations as to how it might shape the Fed’s mandate. Warsh said: “We recognize that AI is a new variable—potentially a new factor of production—that will have consequences for both the economy and the conduct of monetary policy. It opens some major lines of inquiry: Will the application of AI cause a significant, sustained rise in productivity across the economy? And if so, when?”
-
In previous years, Fed leaders used their keynote addresses as monetary policy resets for the year ahead.
8 details only one outlet reported
Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
-
01 ZeroHedge How much will Kevin Warsh say in Jackson Hole today? That's the question on investors' minds.
-
02 MarketWatch Market Extra Kevin Warsh gets what every Fed chair hopes for: A bond market that trust his words
-
03 Bloomberg Kevin Warsh’s Pivot Some thoughts on the most anticipated speech at Jackson Hole.
-
04 Fortune The U.S. stock market held steady after the speech, but expectations are building in the bond market for the Fed to hike interest rates. The yield on the two-year Treasury, which closely tracks expectations for what the Fed will do with its federal funds rate, moved from 4.22% to 4.30%, a sign that investors expect short-term yields to move higher.
-
05 New York Post Business In the past, previous Fed chairs – including Warsh’s immediate predecessor, Jerome Powell – have used their appearance in the Teton mountains of Wyoming to deliver major policy announcements.
-
06 CNBC At Jackson Hole, Warsh recommitted to maintaining the 2% PCE goal, calling it a "firm, fixed target."
-
07 Epoch Times Business “They do not tell me that underlying trends have meaningfully improved,” Warsh stated in his prepared remarks.
-
08 BBC Business Published The head of the US central bank said policymakers will "have work to do" to if they are not confident cost of living pressures are easing for Americans.
Fact Corroboration
Which sources independently confirm the same facts. Hover a claim to see its sources, or a source to see what it corroborates.
Coverage by Perspective
Source Similarity
Connections show how similarly each outlet covered this story. Thicker lines = more similar framing.
Sources (11)
- politico-economy
- bbc-biz
- ft
- cnbc
- nypost-biz
- rcmarkets
- marketwatch
- epochtimes-biz
- zerohedge
- bloomberg
- fortune