CBA Strategist: Warsh’s Jackson Hole Speech Faces Four Communication Goals

TREE NEWS update: Commonwealth Bank of Australia FX strategist Samarra Hammoud says Fed Chair Warsh’s Jackson Hole speech will aim to restore confidence in the Fed’s inflation fight, ease concerns about fiscal dominance, assure markets that less forward guidance won’t hurt financial stability, and strengthen confidence in Fed working groups. Markets should be skeptical that communication alone can achieve these goals, and may see Warsh as less hawkish on inflation, potentially weakening the dollar.