1st Speech Of Kevin Warsh-Jackson Hole Symposium-Global Asset Spooked On Hawkish Tone
Key Takeaways
Underlying inflation remains too high and the Fed has "work to do"
If price pressures do not move clearly and rapidly back to the 2% target
Financial conditions are not currently restrictive
Keeping rate hikes on the table and its Fed's predominant tool
Criticized heavy reliance on rigid forward guidance, arguing for a structural shift
Policymakers should speak less and let markets independently digest unfiltered economic signals.
By narrow credit spreads and robust lending—do not currently show sufficient policy restraint
No signaling of rate hike for September FOMC meet
PCE price index remains the gauge to be targeted
What Was The Impact Post Speech?
Fall in US indices and AI/Chipmakers
2-year US Treasury yield up 11bps to 4.34%
Spot gold falls below $4,500/oz
Bitcoin falls under $77,000
Asian markets-likely to open negative on Monday
What Lies Ahead For Fed?
Proper roadway mapped out
Risk-off sentiment may come back
Money markets projecting 50% hike in Sept FOMC Meet
Longer dated-bonds may remain stabilized
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1August 29, 2026 1.8K 4
