Federal Reserve Board Chairman Kevin Warsh speaks during a news conference at the Federal Reserve in Washington, Wednesday, July 29, 2026. (AP Photo\/Mark Schiefelbein)<\/small><\/p>\n
2026-08-27T10:00:07Z<\/p>\n
WASHINGTON (AP) \u2014 New Federal Reserve chair Kevin Warsh has brought sharp change in how the central bank communicates by saying much less<\/a><\/span> than his predecessors about the economy and inflation.<\/p>\n But so far, many economists and Wall Street investors haven\u2019t been thrilled with that approach.<\/p>\n On Friday, Warsh has a high-stakes opportunity to address those concerns and underscore his inflation-fighting bona fides when he gives his speech in Jackson Hole, Wyoming, during the Fed\u2019s annual economic symposium<\/a><\/span>. <\/p>\n What many economists and Wall Street analysts are hoping for is a clear signal on how he thinks the Fed should handle the stubbornly elevated inflation<\/a><\/span> that has caused pervasive gloom<\/a><\/span> among many consumers. At his last press conference<\/a><\/span>, he sowed confusion by ducking repeated questions on whether the Fed would hike its benchmark interest rate if inflation stays high. <\/p>\n Warsh has said he doesn\u2019t want to provide what analysts call \u201cforward guidance\u201d about whether the Fed will hike or cut rates or stay on hold at upcoming meetings. He argues that it limits the Fed\u2019s flexibility by committing it to a specific policy. He also thinks financial markets have become too dependent on such guidance. <\/p>\n Yet some economists argue that he could say more about his views on Fed policy without tipping his hand about future moves. <\/p>\n \u201cWhat he needs to do is to clarify the conceptual framework he\u2019ll bring to directing monetary policy,\u201d David Wilcox, a senior fellow at the Peterson Institute for International Economics, said. \u201cHe\u2019s refused to provide even that amount of illumination.\u201d<\/p>\n Whether Warsh will deliver that clarification Friday is an open question. Last month, he said he wanted his speech to focus on the \u201cbig questions\u201d such as AI and productivity, demographic changes, and the global economy\u2019s response to shocks from the Iran war. <\/p>\n