The Warsh Effect: A Shot Across the Bow of Markets The Jackson Hole symposium is a gathering of central bankers that provides an opportunity for them to discuss monetary policy without formal announcements.
This year's iteration saw Federal Reserve Chair Kevin Warsh take center stage with comments that sent shockwaves through markets: interest rate hikes may be necessary if policymakers doubt inflation is headed back to the 2% target.
Warsh's remarks at Jackson Hole were notable for their departure from his usual tight lipped demeanor and vagueness.