Federal Reserve Chair Kevin Warsh is set to give a significant speech on Friday during the central bank's annual economic symposium in Jackson Hole, Wyoming.
His speech comes as the Fed contends with ongoing inflation and a bond market that is becoming increasingly anxious. Last week, the 30-year Treasury yield reached a 19-year peak before experiencing a brief decline following Treasury Secretary Scott Bessent's announcement regarding plans to double the maximum amount of long-term debt the government is permitted to repurchase.
This week, the Federal Reserve's preferred measure of inflation indicated a 3.7 percent increase in prices over the last year, coinciding with the economy losing 23,000 jobs in the previous month.
Warsh's upcoming appearance on Friday will also scrutinize his communication strategy. Since succeeding former Chair Jerome Powell, Warsh has generally refrained from indicating the bank's forthcoming actions.
In the meantime, President Donald Trump has persistently advocated for lower interest rates, although it is widely anticipated that the Fed will maintain steady rates during its September meeting.
{{/usCountry}}In the meantime, President Donald Trump has persistently advocated for lower interest rates, although it is widely anticipated that the Fed will maintain steady rates during its September meeting.
{{/usCountry}}Kevin Warsh speech today time
Warsh's address is set to commence at at the Jackson Hole Economic Policy Symposium at 10 a.m. EDT.
Where can one view Kevin Warsh speech?
You may view the speech live by visiting the Federal Reserve Board Calendar website and clicking on the "Watch Live" link directly.
What should one expect from Kevin Warsh speech?
Warsh has encountered increasing criticism for failing to clearly articulate his "reaction function" — the economic circumstances that would lead the Federal Reserve to adjust interest rates. Investors consider his speech on Friday to be a significant opportunity for him to offer more clarity, as reported by CNBC. Presently, markets estimate the likelihood of a rate increase at the Fed's meeting on September 15-16 to be approximately 34%.
Warsh assumed the role of Fed chair in May and has presided over just one FOMC meeting to date, during which policymakers decided to maintain the federal funds rate at 3.5%-3.75%. Since his appointment, he has refrained from providing forward guidance or specifying the factors that would affect his rate decisions, thereby requiring investors to analyze economic data and determine the probable policy trajectory on their own.
“People keep asking me what I’m expecting, and I’m not really expecting much of anything. I think it’s hard to predict what he’s going to say,” said Luke Tilley, chief economist at M&T Bank and Wilmington Trust Investment Advisors, as per CNBSC. “If I had to guess, I would say that he’s going to give a very high-level, broad look at the work of the task forces and how he thinks the Fed should operate, as opposed to a nuts-and-bolts assessment of the economy and expectations for policy.”