Kevin Warsh delivers his first Jackson Hole keynote as Federal Reserve chair on Friday, with markets looking for clarity on how he plans to tame inflation that remains above the Fed’s 2% target. His commentary at the July policy meeting offered little forward guidance, a vagueness that helped push long-term Treasury yields to 20-year highs.
Wednesday’s PCE report is expected to show July inflation cooled slightly to 3.6% year-over-year, the smallest increase in four months. Still, analysts expect Warsh to focus on laying out his broader framework for Fed reform, including the five task forces he has launched, rather than commit to specific near-term rate guidance.