Fed Chairman Kevin Warsh Called Inflation 'More Concerning' at His First Jackson Hole Speech. Does That Signal a Rate Hike Is Coming?
Kevin Warsh is ushering in big changes as Fed Chairman, but Wall Street can't help but look for hints about the future; it might be right this time.
Overview
"What's the Fed going to do?" is a question that Wall Street would love to know the answer to. In the past, Federal Reserve Chairmen would provide pretty explicit guidance about what investors should expect. Under new Fed Chair Kevin Warsh, however, that dynamic has changed. But he can't avoid stating the obvious, either, which is why stubborn inflation readings are "more concerning." And it wouldn't be a shock to see a rate hike in the near future.
The Federal Reserve sets interest rates to help guide the U.S. economy. The goal is two-fold: high employment and stable prices. These two goals can be contradictory at times, so the Fed is always walking a tightrope. Since the turn of the century, however, the Fed has provided substantial guidance to the market to help investors prepare for what lies ahead.
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Originally published at www.fool.com.