🚨 FED CHAIR WARSH SENDS A HAWKISH WARNING

Fed Chair Kevin Warsh delivered a firm message at Jackson Hole: inflation is still too high, financial conditions aren’t restrictive enough, and the Fed needs clearer evidence before easing policy.

🔴 Key points: • 2% inflation target remains firm
• PCE inflation at 3.7%
• 54% of PCE components still rising above 3%
• Economy and labor market remain strong
• Financial conditions are not restrictive
• AI investment is driving a major share of business-investment growth
• Further tightening remains possible if inflation doesn’t move quickly toward 2%

⚠️ Warsh did NOT commit to a September rate hike, but the overall message was clearly hawkish.

🔥 Bottom line: The Fed isn’t ready to declare victory over inflation. Markets should prepare for continued volatility.
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