Warsh Faces Jackson Hole Test as 2.5% Core CPI Eases Pressure Before September

3 articles · Updated · Yahoo Finance · Aug 14

Jackson Hole has become a key test for Kevin Warsh’s first months as Fed chair, with investors looking for a clearer September policy signal after his July 29 remarks unsettled markets.
Bond yields jumped and traders priced in more than two rate hikes after Warsh suggested higher market yields were doing some of the Fed’s tightening, fueling doubts about the central bank’s inflation strategy.
July data has eased some of that pressure: core CPI slowed to 2.5% from 2.6% in June and 2.9% in May, marking a second straight month of cooling inflation.
Producer prices offered a less clean picture, with core PPI minus food, energy and trade services rising 4.7% in July versus 4.6% expected, even as the monthly pace cooled to 0.2% from 0.4%.
Fed chairs often use Jackson Hole to frame September decisions, and Warsh’s speech now carries added weight as markets gauge whether the Fed will hold rates steady or tighten again.