‘Warsh is giving the market what it wants’: What the Street is saying about the Fed chair’s Jackson Hole speech

Fed Chair Kevin Warsh said policymakers will “have work to do” if they are not confident underlying inflation is moving back to the 2% target, implying potential interest rate hikes to ease price pressures. While no specific hike was announced, the remarks are the closest acknowledgement yet that further tightening may be required. This is likely to pressure rate-sensitive assets as markets recalibrate the path for yields.