Warsh Makes A Hawkish Pivot

RIA · Aug 31, 2026

Traditionally, the annual Jackson Hole Symposium is where the Fed Chair signals which economic forces are shaping the Fed's thinking for the coming year. With a few members pushing for rate hikes and inflation making others anxious, the market is taking his speech as more of an indication of what the Fed may or may not do at the next few FOMC meetings, and less about its 2027 outlook. Focused on the here and now, Warsh was blunt in his assessment of inflation. He signaled the Fed may not be done fighting inflation, saying financial conditions didn't look restrictive enough to him and that…