Fed Chair Warsh Withholds Rate Hints at Jackson Hole as $30 Trillion Treasury Market Sells Off
Updated
Updated · The Guardian · Aug 24
Fed Chair Warsh Withholds Rate Hints at Jackson Hole as $30 Trillion Treasury Market Sells Off
3 articles · Updated · The Guardian · Aug 24
Summary
Kevin Warsh signaled his Friday Jackson Hole speech may avoid the usual policy clues on inflation and upcoming Fed rate decisions, instead focusing on broader issues such as productivity and demographics.
Bond traders are watching closely because selling pressure has intensified in the $30 trillion US government debt market amid inflation worries and concern over Donald Trump’s tax and spending plans.
Scott Bessent has tried to calm investors by pledging at least to double Washington’s purchases of US Treasury bonds, but the market test now shifts to whether Warsh reassures investors on the Fed’s anti-inflation resolve.
The Jackson Hole gathering comes ahead of Fed meetings in September and December, making Warsh’s first conference as chair a key signal of how the central bank balances market stress against inflation risks.