What Warsh's Jackson Hole speech signals about where interest rates are headed - Fox Business

Federal Reserve Chair Kevin Warsh delivered his first keynote at the Jackson Hole Symposium on Friday, laying out his economic views and defending his stance that the Fed should scale back forward guidance on future rate moves.
Warsh stressed the central bank's commitment to returning inflation to its 2% target, calling it a "firm, fixed" goal, and described July's PCE inflation reading of 3.7% year-over-year as "concerning."
On employment, Warsh said that limited labor supply growth is weighing on monthly jobs figures, but characterized the overall labor market data as "broadly consistent with full employment."
Some Fed watchers have criticized Warsh's efforts to limit forward guidance—which he believes should be reserved for economic or financial crises—though several analysts said the speech clarified his position.
Seema Shah of Principal Asset Management said Warsh presented a clearer picture of a Fed focused on inflation and prepared to raise rates if progress stalls, adding that the risk of a September hike has increased and that markets reacted positively to the policy clarity despite its hawkish tone.
Gregory Daco of EY-Parthenon noted the address came as the Fed's credibility and commitment to price stability were being questioned amid Warsh's resistance to providing forward guidance.