Federal Reserve Chair Warsh said on Thursday at the Jackson Hole symposium that if he cannot be confident that underlying inflation is moving toward the 2% target, the Fed has "work to do," indicating that further rate hikes may be necessary. Warsh stated, "We need to be confident that underlying inflation is moving toward our target at a clear and sufficient pace. If not, we have work to do. That is our job and our mission, and it is our responsibility to fulfill it."
Warsh signals possible further rate hikes, implying higher policy rate.
Hawkish Fed stance likely pushes 10Y yields up, lowering bond prices.
