Rates and inflation in focus
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The chairman of the US Federal Reserve, Kevin Warsh, has signalled a willingness to adopt a tighter monetary policy. "We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed.
Inflation clearly remained elevated in July, but we think that on balance the PCE data does not shift the dial significantly for September’s decision. It may be enough to push some into the hiking camp. Governor Lisa Cook was explicit at the start of August that PCE inflation of 3.7 per cent in June was too high, where it remained in July.
Markets will be wanting much -- but expecting little -- from US Federal Reserve Chair Kevin Warsh as he kicks off the Jackson Hole central banking conference in Wyoming on Friday. Fed chiefs traditionally use their first speech at Jackson Hole to lay out their vision for how they see the path for monetary policy and the central bank as a whole.
For the rest of 2026, models from forecasting companies like Trading Economics anticipate an inflation rate of about 3.5% through the middle of the year. After that, it may decline to around 3%.
She cited the rise in portfolio management fees, driven by stock values as opposed to supply and demand conditions, as one example that left her still with an outlook in which inflation is likely to fall on its own.
Annual inflation slowed for the second month in a row, cooling to 3.4% in July as prices at the pump delivered less of a bite, according to new data released Wednesday by the Bureau of Labor Statistics.
Dow Jones| Nasdaq | S&P 500 | US Stock Market Today |Live Updates: US stock futures slipped as the AI-led rally paused ahead of Fed Chair Kevin Warsh’s Jackson Hole speech. Investors are seeking signals on September rates amid inflation warnings.
Gold prices fell nearly 1.86 per cent as markets reacted to higher-than-expected US inflation data and a hawkish debut speech by US Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. On Friday,
US borrowing costs have jumped after Kevin Warsh, the chairman of the Federal Reserve, signalled he could defy Donald Trump and raise interest rates.