Story perspectives

Fed Ends Forward Guidance, Warns Inflation Stays High

8/28/2026

Summary

Story summary

Federal Reserve Chair Kevin Warsh delivered his first Jackson Hole keynote address on August 28, 2026, in Wyoming.
Warsh announced the Fed will stop issuing forward guidance and let market pricing reflect real-time data.
He warned July PCE inflation was 3.7% and CPI 3.4%, both above the 2% target.
Treasury Secretary Scott Bessent said the Treasury will double off-the-run debt buybacks starting September 9, potentially clashing with Warsh’s market-driven stance.

History

Historical Context

In July 1979 President Jimmy Carter nominated Paul Volcker as Fed chairman; after his August confirmation he ended passive guidance. Volcker lifted the federal-funds rate from an 11.2% average to a 20% peak in June 1981, cutting inflation from a 14.8% March 1980 high to below 3% by 1983 while sparking a recession. The move created a precedent for later chairs to drop forward guidance.

1 of 2

Story summary

Federal Reserve Chair Kevin Warsh delivered his first Jackson Hole keynote address on August 28, 2026, in Wyoming.
Warsh announced the Fed will stop issuing forward guidance and let market pricing reflect real-time data.
He warned July PCE inflation was 3.7% and CPI 3.4%, both above the 2% target.
Treasury Secretary Scott Bessent said the Treasury will double off-the-run debt buybacks starting September 9, potentially clashing with Warsh’s market-driven stance.

1 / 2