Washington —
Inflation is the Federal Reserve’s biggest problem, but investors are going to have to figure out for themselves when officials will step in, Chairman Kevin Warsh said Friday in remarks prepared for his speech at Jackson Hole, Wyoming.
The US economy is at “full employment,” Warsh said in the remarks for the prominent gathering of central bankers, finance ministers and policymakers from around the world, but inflation figures “are more concerning.”
For more than two decades, the Fed’s sitting leader has signaled where interest rates are heading in their keynote address at the Federal Reserve Bank of Kansas City’s annual economic symposium.
Warsh’s break from tradition on Friday reinforces one of his biggest changes at the bank: dialing back on communications to markets and the public about the Fed’s future plans. That, in turn, has left traders figuring out how to operate in a new era for the US central bank, even as global pressures from government debt, the rise of AI and a war-driven inflation spike rattle financial markets.
