Updated
Updated · CNBC · Aug 27
Kalshi Gives Warsh 8% Odds of Saying Rate Cut at Jackson Hole
Updated
Updated · CNBC · Aug 27

Kalshi Gives Warsh 8% Odds of Saying Rate Cut at Jackson Hole

3 articles · Updated · CNBC · Aug 27

Summary

  • Kalshi traders see little chance Kevin Warsh will use his Jackson Hole speech to signal September policy, assigning just 8% odds to “rate cut” and 16% to “bond market.”
  • Those low odds come despite last week’s bond-market stress, when the 30-year Treasury yield topped 5.3% before the Treasury doubled long-term debt buybacks to at least $4 billion from $2 billion.
  • A CNBC survey pointed the same way: 45% of respondents do not expect Warsh to expand on the rate outlook, and Goldman Sachs said he is unlikely to offer strong hints on next month’s decision.
  • Prediction markets instead expect Warsh to emphasize inflation and Fed process, with nearly 90% odds he says “inflation” and more than 70% odds he mentions the task forces announced in June.

Insights

With the Fed Chair avoiding rate talk, what hidden signals in his inflation speech could trigger a massive market swing?
As 30-year Treasury yields hit historic highs, will the Fed's silence on bond markets ignite unprecedented volatility?
How might the Fed's new task forces quietly redefine price stability for an AI-driven economy without explicitly cutting rates?