Fed Chair Kevin Warsh Says Inflation Is the Bigger Risk, Avoids Rate Guidance

Fed Chair Kevin Warsh said inflation is the biggest challenge facing the Federal Reserve, while telling investors to judge for themselves when officials may step in. According to Sina Finance, he said the U.S. economy is at full employment, but inflation data are becoming increasingly worrying. Warsh broke with a more than two-decade tradition at the Kansas City Fed's annual economic symposium in Jackson Hole, where Fed chairs have typically used keynote speeches to signal the path of interest rates. According to Sina Finance, he did not signal the direction of rates or say what conditions would prompt action, and he has been pushing a major reform at the Fed to reduce information shared with markets and the public about future policy plans. According to Sina Finance, Warsh also declined to comment on rates at a press conference last month, after which long-term bond yields rose sharply. The article said government fiscal deficits and increased corporate bond supply have pushed yields higher in recent months, adding that the U.S. federal government will continue to face heavy interest expenses and a larger $40 trillion debt load.