Warsh faces high-stakes Jackson Hole speech as markets seek rate clues
What's new: Investors see about a one-in-three chance of a Fed rate hike in mid-September as inflation runs at 3.7%, above target.
Federal Reserve Chair Kevin Warsh is due to deliver his first major Jackson Hole speech on Friday, with investors looking for clues on how he plans to bring inflation back to the Fed's 2% goal. Warsh took over in May and has so far offered little detail on his policy approach, frustrating markets already focused on rising Treasury yields. The Fed's preferred inflation measure was 3.7% in the 12 months through July, down from 4.1% in May but still well above target. Investors currently price in roughly a one-in-three chance of a rate increase at the next Fed meeting in mid-September. CNBC reported Warsh has also set up five task forces to review inflation, the balance sheet, data, technology and Fed communications.