Warsh's Warning: What a Hawkish Fed Means for Markets and Main Street Federal Reserve Chair Kevin Warsh's recent speech has sent shockwaves through financial markets, with investors scrambling to adjust their bets on interest rate hikes.
His remarks at the annual economic symposium in Jackson Hole marked a significant shift in tone from his previous stance, sparking concerns that the Fed may be getting ahead of itself.
Warsh acknowledged that financial conditions don't appear restrictive and suggested that the central bank will "have work to do" if underlying inflation doesn't return to its 2% target.