NewsHK
Bond markets arrived at Jackson Hole, Wyoming pressing for direction on the rate path.
Federal Reserve Chair Kevin Warsh, in his debut speech to the Kansas City Fed's annual economic symposium on Friday, gave them enough to move on.
Futures markets shifted toward expecting a rate hike at the September 15-16 policy meeting after the speech, with the repricing extending to bonds and equities.
Warsh told an audience of global central bankers that the Fed's standard is confidence that "underlying inflation is moving to our objective, clearly and at sufficient speed," and that without it "we have work to do." He prefaced those remarks deliberately: "You can call it an outline, you can call it a trail map, just don't call it forward guidance." What followed was a partial disclosure of his reaction function.
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