Fed Chair Kevin Warsh at Jackson Hole: 'We have work to do' on inflation
Federal Reserve Chair Kevin Warsh stated at the Jackson Hole symposium that the central bank must continue working to bring inflation down to its target. Following these hawkish remarks, Bitcoin prices dipped and market expectations for a September rate hike increased.
Why it matters
Central bank policy shifts significantly impact global financial markets, including interest rates, stock valuations, and cryptocurrency volatility.
“The responsibility for 65 months of sustained, elevated inflation sits squarely with the central bank,” said Warsh, delivering his keynote address at the Kansas City’s Fed Jackson Hole symposium.
“We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That's our job . . . our mandate . . . and our charge to keep.”
Bitcoin is headed lower on the hawkish remarks, dipping to $78,700. U.S. stocks are down modestly, and bond yields are headed slightly higher.
September rate hike odds have jumped to 42% from 35% a day earlier, according to CME FedWatch .
Warsh’s speech was highly anticipated, as the Jackson Hole event has often been an occasion for U.S. central bank chiefs to prep markets for key policy changes.
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