Fed's Warsh Vows to Hit 2% Inflation Target

Federal Reserve Chairman Kevin Warsh speaks at Jackson Hole and commits to delivering price stability. He says market measures of inflation expectations are currently well anchored but must be closely minded because they can unanchor suddenly. He places responsibility for prolonged elevated inflation on the central bank and says policymakers must be confident that underlying inflation is clearly returning to 2% at sufficient speed, otherwise the Fed has more work to do. - Warsh says market prices show confidence the Fed will deliver price stability and says they are right. - He warns that market measures of inflation expectations can look durable until they unanchor and must be closely minded. - He assigns central bank responsibility for 65 months of sustained elevated inflation. - Warsh sets his policy standard: be confident underlying inflation is moving to 2% clearly and at sufficient speed. - He signals the Fed has more work to do if that confidence is not met. - The tone implies a hawkish policy stance with no explicit asset recommendations.