The One Thing Markets Need From Warsh At Jackson Hole Today
Markets forgive volatility but they don't forgive silence, warns the CEO of one of the world's largest independent financial advisory organisations.
This is the warning from Nigel Green of deVere Group as Federal Reserve Chair Kevin Warsh prepares to deliver his first Jackson Hole address since taking charge of the world's most powerful central bank, with inflation stuck above target and the bond market showing fresh strain.
AdvertisementUS consumer prices rose 3.4% in the 12 months to July, still well above the Fed's 2% goal after six straight years of missing it.
The 10-year Treasury yield has climbed to 4.68%, nearly half a percentage point higher than a year ago, even as Treasury Secretary Scott Bessent has doubled the pace of long-dated bond buybacks in an attempt to hold borrowing costs down.
Warsh takes the stage at 10am Eastern, with the Fed's target range still parked at 3.50% to 3.75% and no clear signal on where it moves next.
The deVere CEO says the market's patience with ambiguity has run out.
The growing friction between the Fed and the US Treasury is the second flashpoint investors are watching closely.
He warns that dodging the subject would be read as weakness rather than diplomacy.
Global investors are not only parsing Warsh's words for what they mean domestically.
Asked what he expects once Warsh finishes speaking, the deVere CEO is direct.
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