Investors Likely Temper Expectations of Meaningful Hints on Fed Policy Path
Dow Jones
Yesterday
0506 GMT - Given Federal Reserve Chair Kevin Warsh's well-known scepticism toward forward guidance, investors should likely temper expectations of any meaningful hints on the future policy path, Impax Asset Management's Ross Pamphilon says in a note. "Instead, I would expect greater emphasis on inflation, productivity and labour market dynamics," the CIO of fixed income says. Warsh will need, however, to strike a careful balance, and this speech at Jackson Hole represents an early test of his communication strategy and credibility, Pamphilon says. "A message perceived as too dovish could trigger further [Treasury] curve steepening, weigh on the dollar and support gold. Conversely, a more hawkish tone risks prompting markets to price a September rate hike."
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