Jackson Hole analyst roundup: Warsh's speech sends hike chances higher, may put Fed `at odds' with Treasury

Live updates

1. 15d ago

   Fed Chair Warsh Signals Rate Hikes at Jackson Hole

   Federal Reserve Chair Kevin Warsh has increased the likelihood of interest rate hikes following a speech at Jackson Hole. While Warsh advocated for higher rates to combat inflation, Wall Street remains divided on whether a hike will occur in the coming weeks. Barclays forecasts two additional rate hikes this year. The shift in tone has caused wariness among bond investors and created potential friction between the Federal Reserve and the Treasury.

   Why it matters

   The Federal Reserve manages U.S. monetary policy to control inflation and employment. Rate decisions impact borrowing costs across the global economy. Warsh's debut speech at Jackson Hole establishes his policy direction as Chair.

   What is confirmed

   • Fed Chair Kevin Warsh spoke at Jackson Hole regarding inflation and interest rates.
   • Wall Street is split on whether a rate hike will occur in a couple of weeks.

   Still unconfirmed

   • Treasury yields ticked lower as the U.S.-Iran war returned to the spotlight.

   What to watch next

   • The Federal Reserve's next official interest rate decision
   • Official Treasury Department response to Warsh's policy direction
   Sources used for this update (9)

   1. The Washington Post — The Fed confronts a powerful new economic force
   2. The New York Times — Warsh, After Talking Tough on Inflation, Faces a ‘No-Win Situation’ on Rates
   3. WSJ — Warsh Makes the Case for Higher Rates and Raises the Bar for Standing Pat
   4. Bloomberg.com — Bond Investors Wary After Warsh Fans Wagers Fed Poised to Hike
   5. CNBC — Jackson Hole analyst roundup: Warsh's speech sends hike chances higher, may put Fed `at odds' with Treasury
   6. Reuters — Barclays sees two more Fed rate hikes this year after Warsh speech
   7. CNBC — Treasury yields tick lower as U.S.-Iran war moves back into the spotlight
   8. finance.yahoo.com — Fed Chair Warsh's Jackson Hole Debut: What He Said, and Didn't Say, About Rate Hikes
   9. www.businessinsider.com — How Wall Street is thinking about rate hikes following the latest Fed speech
   confidence 80%