{"id":2118028,"date":"2026-08-28T15:16:47","date_gmt":"2026-08-28T12:16:47","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=2118028"},"modified":"2026-08-28T15:16:47","modified_gmt":"2026-08-28T12:16:47","slug":"warsh-flags-inflation-concerns-as-he-rejects-fed-forward-guidance","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=2118028","title":{"rendered":"Warsh flags inflation concerns as he rejects Fed forward guidance"},"content":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/images.euronews.com\/articles\/stories\/09\/89\/28\/87\/1200x675_cmsv2_cf0060a9-182f-5584-9b31-b5fcad3b7d05-9892887.jpg&#8221;]<\/p>\n<article id=\"abe-2921384-pos1-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1 the-media-object--has-video\" data-nid=\"2921384\" data-cid=\"9893396\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921384-label-pos1-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/33\/96\/189x106_cmsv2_ddc9c191-3e38-5e54-8079-cd50a2790400-9893396.jpg\" loading=\"lazy\" alt=\"Mourners gather in the pouring rain to watch as King Harald V&apos;s remains arrive to the Royal Palace in Oslo\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    No Comment<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Norway mourns king Harald V as crown prince Haakon becomes king\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2921403-pos2-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2921403\" data-cid=\"9893523\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921403-label-pos2-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/35\/23\/189x106_cmsv2_657370fb-0eb8-5339-8a83-43f1e2783ec1-9893523.jpg\" loading=\"lazy\" alt=\"Norway&apos;s King Harald gives a speech during a gala dinner at the Palace in Oslo, 8 April, 2025\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Europe News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Europe&#8217;s monarchs and world leaders mourn Norway&#8217;s King Harald V\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2921401-pos3-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2921401\" data-cid=\"9893497\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921401-label-pos3-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/34\/97\/189x106_cmsv2_c4700f6d-725d-5d15-871c-2e627e7f61ce-9893497.jpg\" loading=\"lazy\" alt=\"Residents salvage their belongings from damaged houses after flash flooding in the Devighat area of Nuwakot district in Nepal, 28 August, 2026\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Nepal<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Number of missing in Nepal floods passes 2,400 as EU pledges aid\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2921232-pos4-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2921232\" data-cid=\"9893458\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921232-label-pos4-c-latest-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/34\/58\/189x106_cmsv2_cbb616c5-b14e-5ccb-ad11-5b6eb696474a-9893458.jpg\" loading=\"lazy\" alt=\"Migrants who crossed from Morocco into Spain return to a beach after being expelled from the area the previous day, 21 August, 2026\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Europe News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Ceuta &#8216;on the brink of collapse&#8217; as Spain seeks Frontex support\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2921384-pos1-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--has-video\" data-nid=\"2921384\" data-cid=\"9893396\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921384-label-pos1-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/33\/96\/189x106_cmsv2_ddc9c191-3e38-5e54-8079-cd50a2790400-9893396.jpg\" loading=\"lazy\" alt=\"Mourners gather in the pouring rain to watch as King Harald V&apos;s remains arrive to the Royal Palace in Oslo\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    No Comment<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Norway mourns king Harald V as crown prince Haakon becomes king\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2921403-pos2-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2\" data-nid=\"2921403\" data-cid=\"9893523\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921403-label-pos2-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/35\/23\/189x106_cmsv2_657370fb-0eb8-5339-8a83-43f1e2783ec1-9893523.jpg\" loading=\"lazy\" alt=\"Norway&apos;s King Harald gives a speech during a gala dinner at the Palace in Oslo, 8 April, 2025\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Europe News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Europe&#8217;s monarchs and world leaders mourn Norway&#8217;s King Harald V\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2921401-pos3-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2\" data-nid=\"2921401\" data-cid=\"9893497\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921401-label-pos3-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/34\/97\/189x106_cmsv2_c4700f6d-725d-5d15-871c-2e627e7f61ce-9893497.jpg\" loading=\"lazy\" alt=\"Residents salvage their belongings from damaged houses after flash flooding in the Devighat area of Nuwakot district in Nepal, 28 August, 2026\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Nepal<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Number of missing in Nepal floods passes 2,400 as EU pledges aid\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article id=\"abe-2921232-pos4-c-latest-stories-sidebar\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2\" data-nid=\"2921232\" data-cid=\"9893458\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921232-label-pos4-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/34\/58\/189x106_cmsv2_cbb616c5-b14e-5ccb-ad11-5b6eb696474a-9893458.jpg\" loading=\"lazy\" alt=\"Migrants who crossed from Morocco into Spain return to a beach after being expelled from the area the previous day, 21 August, 2026\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Europe News<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Ceuta &#8216;on the brink of collapse&#8217; as Spain seeks Frontex support\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article class=\"helper-site-row o-article-newsy\">\n<div class=\"helper-site-container o-article-newsy__container\">\n<div class=\"o-article-newsy__main\">\n<header class=\"h-grid o-article-newsy__main__header\">\n<nav aria-label=\"Breadcrumbs\" class=\"c-article-breadcrumbs\">\n<div id=\"adb-article-breadcrumb\" class=\"c-article-breadcrumbs__list\">\n<p>                          Business<\/p>\n<p>                          Economy<\/p><\/div>\n<\/nav>\n<h1 class=\"c-article-redesign-title\">\n                            Warsh flags inflation concerns as he rejects Fed forward guidance<\/h1>\n<div class=\"c-article-image-video u-position-relative \">\n<div class=\"js-superdiv u-aspect-ratio-16x9 u-position-relative \" data-controller=\"video-player\" data-sponsored=\"Partner content\"><img fetchpriority=\"high\" decoding=\"async\" class=\"js-poster-img c-article-media__img\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/28\/87\/1536x864_cmsv2_cf0060a9-182f-5584-9b31-b5fcad3b7d05-9892887.jpg\" width=\"1536\" height=\"864\" loading=\"eager\" alt=\"FILE - Fed Chair Kevin Warsh arrives at the annual Jackson Hole Economic Policy Symposium on Friday, Aug. 28, 2026, in Moran, Wyo. (AP Photo\/Amber Baesler)\"><\/div>\n<div class=\"c-article-caption u-position-absolute\"><i id=\"article-caption-content\" class=\"c-article-caption__content\"><span class=\"c-article-caption__text\"><br \/>\n              FILE &#8211; Fed Chair Kevin Warsh arrives at the annual Jackson Hole Economic Policy Symposium on Friday, Aug. 28, 2026, in Moran, Wyo. (AP Photo\/Amber Baesler)<br \/>\n                    <span class=\"u-color-white\">&#8211;\u00a0<\/span><span class=\"c-article-caption__copyright\">Copyright\u00a0<\/span><span class=\"c-article-caption__credit\">AP Photo<\/span><\/span><\/i><\/div>\n<div class=\"c-article-image-copyright c-article-image-copyright--novideo\">\n      Copyright\u00a0AP Photo\n  <\/div>\n<\/div>\n<\/header>\n<div class=\"h-grid o-article-newsy__main__body u-article-content\">\n<div class=\"o-article-newsy__contributors-publication-date\">\n<div class=\"c-article-contributors\">\n  By&amp;nbspQuirino Mealha\n<\/div>\n<div class=\"c-article-publication-date\" data-timestamp=\"1787930207\">\n                    Published on                 <time datetime=\"2026-08-28 17:16:47 +02:00\">28\/08\/2026 &#8211; 17:16 GMT+2<\/time><span class=\"c-article-publication-date__bullet\">\u2022<\/span>Updated<br \/>\n                                     <time datetime=\"21:40\">21:40<\/time><\/div>\n<\/div>\n<div 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height=\"24\" alt=\"bluesky\" loading=\"lazy\"><span>Bluesky<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-bluesky.svg\" width=\"48\" height=\"48\" alt=\"bluesky\" class=\"u-show-for-desktop\" loading=\"lazy\"><span class=\"u-display-flex u-gap-1 u-show-for-mobile-only\"><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-threads.svg\" width=\"24\" height=\"24\" alt=\"threads\" loading=\"lazy\"><span>Threads<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-threads.svg\" width=\"48\" height=\"48\" alt=\"threads\" class=\"u-show-for-desktop\" loading=\"lazy\"><span class=\"u-display-flex u-gap-1 u-show-for-mobile-only\"><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-whatsapp.svg\" width=\"24\" height=\"24\" alt=\"whatsapp\" loading=\"lazy\"><span>Whatsapp<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-whatsapp.svg\" width=\"48\" height=\"48\" alt=\"whatsapp\" class=\"u-show-for-desktop\" loading=\"lazy\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"c-article-summary\">\n        Federal Reserve Chair Kevin Warsh used his first Jackson Hole address on Friday to argue that financial conditions are not restrictive and that underlying inflation has not meaningfully improved, a hawkish assessment that strengthens the case for a rate hike, while ruling out forward guidance.<br \/>\n    <\/h2>\n<div class=\"c-article-content c-article-content--business js-article-content\">\n<p>Marking his 100th day in the job, Federal Reserve Chair Kevin Warsh told the Kansas City Fed&#8217;s symposium in Wyoming that the US economy has strengthened rather than weakened under recent shocks, that the labour market is consistent with full employment, and that inflation remains the central bank&#8217;s dominant concern.<\/p>\n<div>\n<div class=\"c-ad u-show-for-mobile-only\">\n<div class=\"c-ad__placeholder\"><img decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt loading=\"lazy\"><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<div class=\"c-ad u-show-for-desktop\">\n<div class=\"c-ad__placeholder\"><img decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt loading=\"lazy\"><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<\/div>\n<p>Warsh declined to say what he would do next month, but he removed most of the arguments against acting and bolstered the ones in favour of a rate hike.<\/p>\n<p>&#8220;For my part, today I am impressed by the overall performance of the economy, which appears to have strengthened,&#8221; Warsh stated.<\/p>\n<p>&#8220;One indicator of strength is how well an economy holds up to shocks. On that score, both Main Street and Wall Street have been remarkably resilient,&#8221; he added.<\/p>\n<p>On inflation, Warsh noted that the PCE index stood at 3.7% over twelve months and 4.1% over six, and 54% of the basket&#8217;s components rose by more than 3% over the past year, against 32% in the two decades before the pandemic.<\/p>\n<p>Summer readings that beat expectations &#8220;do not tell me that underlying trends have meaningfully improved,&#8221; Warsh stated.<\/p>\n<p>The Federal Reserve Chair&#8217;s conclusion was blunt: &#8220;the Fed&#8217;s predominant focus right now should be on prices.&#8221;<\/p>\n<div class=\"c-widget-related\" data-stories-id data-event=\"widget_related\">\n<div class=\"c-widget-related__title\"><b class=\"c-widget-related__title__text\" lang=\"en\">Related<\/b><\/div>\n<ul class=\"c-widget-related__list\">\n<li class=\"c-widget-related__item\">Five charts explaining America\u2019s $40 trillion debt<\/li>\n<li class=\"c-widget-related__item\">Bessent vows bigger buybacks after bond yields erased the US Treasury&#8217;s relief rally<\/li>\n<\/ul>\n<\/div>\n<p>The standard set was equally direct. &#8220;We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do,&#8221; Warsh declared.<\/p>\n<p>That assessment matters because it eliminates the case for supporting growth with further stimulus and potentially opens the door for restrictive measures as markets moved in response.<\/p>\n<p>At the time of writing, the 10-year Treasury yield has fallen 0.5% from its Friday high to 4.67% and the 30-year dropped around 0.9% to 5.16%, while the dollar index rose 0.4% from the intraday low to roughly 99.4 points.<\/p>\n<p>Traders raised the implied probability of a 0.25% hike at the 15 and 16 September Fed meeting to 55%, from around 35% before Warsh&#8217;s speech.<\/p>\n<h2>Performance of the US economy<\/h2>\n<p>Warsh opened his speech with what he called a hinge point in history, arguing that artificial intelligence has advanced faster than even its advocates predicted.<\/p>\n<p>Annualised AI token sales at the two leading labs alone exceed $100 billion, he said, up more than 500% in a year.<\/p>\n<p>AI is &#8220;a new variable, potentially a new factor of production,&#8221; raising questions the Fed cannot answer yet such as whether it will lift productivity and when, whether it complements or replaces labour, and where the returns will ultimately land.<\/p>\n<p>A new Federal Reserve task force on productivity and jobs is examining it, though he stressed its recommendations will have no bearing on current policy decisions.<\/p>\n<div class=\"widget widget--type-image widget--size-fullwidth widget--animation-fade-in widget--align-center\" data-ratio=\"0.6665\">\n<div class=\"widget__wrapper\">\n<div class=\"widget__ratio widget__ratio--auto\">\n<div class=\"widget__contents\">\n<figure class=\"widget__figure\"><img decoding=\"async\" class=\"widgetImage__image\" loading=\"lazy\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/28\/87\/808x539_cmsv2_4554bbc9-d12b-5709-9011-ded57f731868-9892887.jpg\" alt=\"FILE - Fed Chair Kevin Warsh, Bank of England Governor Andrew Bailey and Bank of Canada Governor Tiff Macklem at on Friday, Aug. 28, 2026, in Moran, Wyo.\"><figcaption class=\"widget__caption\"><span class=\"widget__captionWrap\"><span class=\"widget__captionText\">FILE &#8211; Fed Chair Kevin Warsh, Bank of England Governor Andrew Bailey and Bank of Canada Governor Tiff Macklem at on Friday, Aug. 28, 2026, in Moran, Wyo.<\/span><span class=\"widget__captionCredit\">(AP Photo\/Amber Baesler)<\/span><\/span><\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Warsh then listed extensive evidence for his positive outlook on the US economy.<\/p>\n<p>Business investment in equipment and intangibles is growing at around 9%, its fastest since 2021, with more than half of this year&#8217;s capital expenditure growth attributable to the AI buildout.<\/p>\n<p>S&amp;P 500 profits went up more than 20% over the year, credit spreads are near historic lows, and banks are easing lending standards. Housing and agriculture are strained, Warsh acknowledged, but on balance he &#8220;would be hard pressed to describe broad financial conditions as restrictive.&#8221;<\/p>\n<p>Unemployment at 4.1% is low by historical standards, with jobless claims near their lowest in decades, leaving inflation as the outlier.<\/p>\n<h2>No forward guidance<\/h2>\n<p>The Federal Reserve Chair devoted a substantial section to defending his refusal to signal future moves, a stance that has drawn criticism since he took office in May.<\/p>\n<p>Forward guidance was adopted during the 2008 crisis by colleagues including himself, he said, and was essential then, but &#8220;the practice has overstayed its welcome&#8221; and now &#8220;risks creating ambiguity in the name of clarity.&#8221;<\/p>\n<p>Warsh warned of a hall-of-mirrors problem in which markets read the Fed while the Fed reads markets, leaving both blind to new developments.<\/p>\n<p>&#8220;We should not indulge a regime in which market participants are looking primarily to the Fed for their next trade,&#8221; he said, adding that the costs of such errors fall not on &#8220;financial high-fliers&#8221; but on households facing high inflation or insecure jobs.<\/p>\n<p>Warsh also rejected calls to publish an explicit reaction function, arguing economic knowledge does not permit a mechanical rule.<\/p>\n<p>Instead he set out six principles: interrogate incoming data rather than trust stale figures, accept that judging supply against demand is imprecise; treat the 2% PCE target as firm and fixed; pursue both mandates without treating them as a trade-off; rely on short-term rates rather than unconventional tools; and remember that money itself matters.<\/p>\n<p>&#8220;I stand here today committed to a discipline, not to a decision,&#8221; Warsh said in closing.<\/p>\n<p>The decision comes on 16 September at the next Fed meeting.<\/p>\n<\/div>\n<p>                                  Go to accessibility shortcuts<\/p>\n<div class=\"c-article-share-comment u-align-items-center u-display-flex\"><span class=\"c-article-share-comment__links u-align-items-center u-display-flex u-justify-content-center js-c-article-share-comment-share\"><span class=\"c-article-share-comment__label\">Share<\/span><\/span><span class=\"c-article-share-comment__label\">Comments<\/span><span class=\"c-article-share-comment__label c-article-share-comment__label--always\">Add Euronews on Google<\/span><\/div>\n<div id=\"adb-article-you-might-also-like\" class=\"perf-cv-auto c-article-you-might-also-like\">\n<h2 class=\"c-article-you-might-also-like__title\">\n        Read more<br \/>\n      <\/h2>\n<div class=\"c-article-you-might-also-like__container\">\n<article id=\"abe-2920957-pos0-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2920957\" data-cid=\"9891053\" data-part-label=\"Partner content\">\n<figure id=\"abe-2920957-label-pos0-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/10\/53\/480x270_cmsv2_57054cab-a1cc-5999-8d5a-0bd0dfc9fced-9891053.jpg\" loading=\"lazy\" alt=\"FILE. Sweden, Denmark, Norway and Finland&apos;s flags lined up together, May 2015\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Markets<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    Nordics weigh merging their stock exchanges into one regional market<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2920930-pos1-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2920930\" data-cid=\"9890841\" data-part-label=\"Partner content\">\n<figure id=\"abe-2920930-label-pos1-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/08\/41\/480x270_cmsv2_cab3a55b-421a-5a95-b609-0fcc99cd1620-9890841.jpg\" loading=\"lazy\" alt=\"FILE. President of Syria Ahmed al-Sharaa walks towards 10 Downing Street to meet Britain&apos;s Prime Minister Keir Starmer in London, 31 March 2026\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Economy<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    Syria&#8217;s president pays for coffee with Visa card as sanctions era ends<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2920852-pos2-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2920852\" data-cid=\"9890437\" data-part-label=\"Partner content\">\n<figure id=\"abe-2920852-label-pos2-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/04\/37\/480x270_cmsv2_259cc852-16d1-5a1b-ab1f-a735f6f187b6-9890437.jpg\" loading=\"lazy\" alt=\"FILE - CEO Jensen Huang talks during the keynote address of Nvidia GTC Tuesday, March 18, 2025, in San Jose, Calif. (AP Photo\/Nic Coury)\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Markets<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    Nvidia bets on another blockbuster year, guiding for 70% growth into 2028<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<div class=\"perf-cv-auto\">\n<ul id=\"adb-article-tags\" class=\"c-tags-list\">\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Interest rates<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  USA<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  bonds<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Federal Reserve<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Kevin Warsh<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  monetary policy<br \/>\n<\/section>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<aside class=\"o-article-newsy__aside\">\n<div class=\"c-ad-wrapper o-article-newsy__aside__content-1\" data-ad-name=\"adzone-halfpage\">\n<div class=\"c-ad c-ad-halfpage u-show-for-desktop\">\n<div class=\"c-ad__placeholder\"><img loading=\"lazy\" decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<div class=\"c-ad u-show-for-mobile-only\">\n<div class=\"c-ad__placeholder\"><img loading=\"lazy\" decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<\/div>\n<div id=\"adb-article-top-stories\" class=\"perf-cv-auto c-top-stories\">\n<h2 class=\"c-top-stories__title\">Top stories<\/h2>\n<div class=\"c-top-stories__item\">\n<article id=\"abe-2921048-pos2-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2921048\" data-cid=\"9891532\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921048-label-pos2-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/15\/32\/320x180_cmsv2_fd84e109-1f1f-58a5-9738-293af474b970-9891532.jpg\" loading=\"lazy\" alt=\"File - 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src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<\/div>\n<div class=\"perf-cv-auto c-most-viewed\">\n<h2 class=\"c-most-viewed__title qa-section-title\">Most read<\/h2>\n<div class=\"c-most-viewed__list\">\n<div class=\"c-most-viewed__item\"><span class=\"c-most-viewed__item__number\">1<\/span><\/p>\n<article id=\"abe-2920670-pos1-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2920670\" data-cid=\"9889382\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    EU GDP shares: Which countries are rising and which are falling?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<\/div>\n<div class=\"c-most-viewed__item\"><span class=\"c-most-viewed__item__number\">2<\/span><\/p>\n<article 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id=\"abe-2920957-pos0-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2920957\" data-cid=\"9891053\" data-part-label=\"Partner content\">\n<figure id=\"abe-2920957-label-pos0-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/10\/53\/480x270_cmsv2_57054cab-a1cc-5999-8d5a-0bd0dfc9fced-9891053.jpg\" loading=\"lazy\" alt=\"FILE. Sweden, Denmark, Norway and Finland&apos;s flags lined up together, May 2015\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Markets<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    Nordics weigh merging their stock exchanges into one regional market<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2920930-pos1-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2920930\" data-cid=\"9890841\" data-part-label=\"Partner content\">\n<figure id=\"abe-2920930-label-pos1-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/08\/41\/480x270_cmsv2_cab3a55b-421a-5a95-b609-0fcc99cd1620-9890841.jpg\" loading=\"lazy\" alt=\"FILE. President of Syria Ahmed al-Sharaa walks towards 10 Downing Street to meet Britain&apos;s Prime Minister Keir Starmer in London, 31 March 2026\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Economy<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    Syria&#8217;s president pays for coffee with Visa card as sanctions era ends<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2920852-pos2-c-article-you-might-also-like__item\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2920852\" data-cid=\"9890437\" data-part-label=\"Partner content\">\n<figure id=\"abe-2920852-label-pos2-c-article-you-might-also-like__item\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/04\/37\/480x270_cmsv2_259cc852-16d1-5a1b-ab1f-a735f6f187b6-9890437.jpg\" loading=\"lazy\" alt=\"FILE - CEO Jensen Huang talks during the keynote address of Nvidia GTC Tuesday, March 18, 2025, in San Jose, Calif. (AP Photo\/Nic Coury)\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Markets<\/p>\n<h3 class=\"the-media-object__title  \">\n<p>    Nvidia bets on another blockbuster year, guiding for 70% growth into 2028<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2921048-pos2-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2921048\" data-cid=\"9891532\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921048-label-pos2-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/15\/32\/320x180_cmsv2_fd84e109-1f1f-58a5-9738-293af474b970-9891532.jpg\" loading=\"lazy\" alt=\"File - French President Emmanuel Macron poses children at a school in La Cluze-et-Mijoux, near Besancon, eastern France, Thursday, 27 April 2023. \" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    European education spending: Does more money mean better grades?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2921211-pos3-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--has-video the-media-object--no-label\" data-nid=\"2921211\" data-cid=\"9892325\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921211-label-pos3-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/23\/25\/320x180_cmsv2_e0e5f917-11de-5295-97a4-7ab64a01ef76-9892325.jpg\" loading=\"lazy\" alt=\"File - Aerial photo of the area of the former Hirtenberg concentration camp near Hirtenberg\/Leobersdorf in Lower Austria.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Austria under fire over business park on ex-Nazi camp site<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2921118-pos4-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2921118\" data-cid=\"9891977\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921118-label-pos4-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/19\/77\/320x180_cmsv2_f0576093-ac74-5861-a684-ab91a48afaa8-9891977.jpg\" loading=\"lazy\" alt=\"French presidential candidates took part in a debate organised by the MEDEF on 27 August\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    French presidential candidates clash in first debate of campaign<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2921098-pos5-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2921098\" data-cid=\"9891879\" data-part-label=\"Partner content\">\n<figure id=\"abe-2921098-label-pos5-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/18\/01\/320x180_cmsv2_e7e8473e-8b39-5c52-bef3-3ef827bc9431-9891801.jpg\" loading=\"lazy\" alt=\"Parcels being sorted\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Chinese imports plunge 30% to 40% after EU tax on small parcels<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2920957-pos6-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2920957\" data-cid=\"9891053\" data-part-label=\"Partner content\">\n<figure id=\"abe-2920957-label-pos6-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/89\/10\/53\/320x180_cmsv2_57054cab-a1cc-5999-8d5a-0bd0dfc9fced-9891053.jpg\" loading=\"lazy\" alt=\"FILE. Sweden, Denmark, Norway and Finland&apos;s flags lined up together, May 2015\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Nordics weigh merging their stock exchanges into one regional market<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2920670-pos1-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2920670\" data-cid=\"9889382\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    EU GDP shares: Which countries are rising and which are falling?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2921098-pos2-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2921098\" data-cid=\"9891879\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Chinese imports plunge 30% to 40% after EU tax on small parcels<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2921048-pos3-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--no-label\" data-nid=\"2921048\" data-cid=\"9891532\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    European education spending: Does more money mean better grades?<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2920930-pos4-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2920930\" data-cid=\"9890841\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Syria&#8217;s president pays for coffee with Visa card as sanctions era ends<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2920957-pos5-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-related the-media-object--no-label\" data-nid=\"2920957\" data-cid=\"9891053\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Nordics weigh merging their stock exchanges into one regional market<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<div class=\"articleBody\" data-key=\"articleBody\">Marking his 100th day in the job, Federal Reserve Chair Kevin Warsh told the Kansas City Fed&#8217;s symposium in Wyoming that the US economy has strengthened rather than weakened under recent shocks, that the labour market is consistent with full employment, and that inflation remains the central bank&#8217;s dominant concern.Warsh declined to say what he would do next month, but he removed most of the arguments against acting and bolstered the ones in favour of a rate hike.&#8221;For my part, today I am impressed by the overall performance of the economy, which appears to have strengthened,&#8221; Warsh stated.&#8221;One indicator of strength is how well an economy holds up to shocks. On that score, both Main Street and Wall Street have been remarkably resilient,&#8221; he added.On inflation, Warsh noted that the PCE index stood at 3.7% over twelve months and 4.1% over six, and 54% of the basket&#8217;s components rose by more than 3% over the past year, against 32% in the two decades before the pandemic.Summer readings that beat expectations &#8220;do not tell me that underlying trends have meaningfully improved,&#8221; Warsh stated.The Federal Reserve Chair&#8217;s conclusion was blunt: &#8220;the Fed&#8217;s predominant focus right now should be on prices.&#8221;The standard set was equally direct. &#8220;We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do,&#8221; Warsh declared.That assessment matters because it eliminates the case for supporting growth with further stimulus and potentially opens the door for restrictive measures as markets moved in response.At the time of writing, the 10-year Treasury yield has fallen 0.5% from its Friday high to 4.67% and the 30-year dropped around 0.9% to 5.16%, while the dollar index rose 0.4% from the intraday low to roughly 99.4 points.Traders raised the implied probability of a 0.25% hike at the 15 and 16 September Fed meeting to 55%, from around 35% before Warsh&#8217;s speech.Performance of the US economyWarsh opened his speech with what he called a hinge point in history, arguing that artificial intelligence has advanced faster than even its advocates predicted.Annualised AI token sales at the two leading labs alone exceed $100 billion, he said, up more than 500% in a year.AI is &#8220;a new variable, potentially a new factor of production,&#8221; raising questions the Fed cannot answer yet such as whether it will lift productivity and when, whether it complements or replaces labour, and where the returns will ultimately land.A new Federal Reserve task force on productivity and jobs is examining it, though he stressed its recommendations will have no bearing on current policy decisions.Warsh then listed extensive evidence for his positive outlook on the US economy.Business investment in equipment and intangibles is growing at around 9%, its fastest since 2021, with more than half of this year&#8217;s capital expenditure growth attributable to the AI buildout.S&amp;P 500 profits went up more than 20% over the year, credit spreads are near historic lows, and banks are easing lending standards. Housing and agriculture are strained, Warsh acknowledged, but on balance he &#8220;would be hard pressed to describe broad financial conditions as restrictive.&#8221;Unemployment at 4.1% is low by historical standards, with jobless claims near their lowest in decades, leaving inflation as the outlier.No forward guidanceThe Federal Reserve Chair devoted a substantial section to defending his refusal to signal future moves, a stance that has drawn criticism since he took office in May.Forward guidance was adopted during the 2008 crisis by colleagues including himself, he said, and was essential then, but &#8220;the practice has overstayed its welcome&#8221; and now &#8220;risks creating ambiguity in the name of clarity.&#8221;Warsh warned of a hall-of-mirrors problem in which markets read the Fed while the Fed reads markets, leaving both blind to new developments.&#8221;We should not indulge a regime in which market participants are looking primarily to the Fed for their next trade,&#8221; he said, adding that the costs of such errors fall not on &#8220;financial high-fliers&#8221; but on households facing high inflation or insecure jobs.Warsh also rejected calls to publish an explicit reaction function, arguing economic knowledge does not permit a mechanical rule.Instead he set out six principles: interrogate incoming data rather than trust stale figures, accept that judging supply against demand is imprecise; treat the 2% PCE target as firm and fixed; pursue both mandates without treating them as a trade-off; rely on short-term rates rather than unconventional tools; and remember that money itself matters.&#8221;I stand here today committed to a discipline, not to a decision,&#8221; Warsh said in closing.The decision comes on 16 September at the next Fed meeting.<\/div>\n<p>[analyse_source url=&#8221;https:\/\/www.euronews.com\/business\/2026\/08\/28\/warsh-flags-inflation-concerns-as-he-rejects-fed-forward-guidance&#8221;]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/images.euronews.com\/articles\/stories\/09\/89\/28\/87\/1200x675_cmsv2_cf0060a9-182f-5584-9b31-b5fcad3b7d05-9892887.jpg&#8221;] No Comment Norway mourns king Harald V as crown prince Haakon becomes king Europe News Europe&#8217;s monarchs and world leaders mourn Norway&#8217;s King Harald V Nepal Number of missing in Nepal floods passes 2,400 as EU pledges aid Europe News Ceuta &#8216;on the brink of collapse&#8217; as Spain seeks Frontex support No [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[90],"tags":[226,36],"class_list":["post-2118028","post","type-post","status-publish","format-standard","hentry","category-international","tag-crawlmanager","tag-euronews-com"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/2118028","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2118028"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/2118028\/revisions"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2118028"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2118028"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2118028"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}