The Federal Reserve chair's first speech will draw attention this week, with markets focused on how he will respond to inflation. The speech is scheduled for 28 August at the Economic Policy Symposium in Jackson Hole.
This week's economic developments will begin with attention focused on the first major speech by Kevin Warsh, the new chair of the U.S. Federal Reserve. Markets are looking to assess how he will respond to persistent inflation and what interest-rate guidance he will provide.
U.S. Treasury yields have remained elevated since the July policy meeting, as Warsh refrained from explaining the outlook and provided no clear guidance on interest rates. Against this backdrop, the Federal Reserve's future monetary policy stance is expected to come back into focus.
According to an analysis by Bloomberg Economics, Warsh has 2 options. One is to signal a policy stance that reassures markets about containing inflation. The other is to preserve flexibility by avoiding advance guidance on the direction of interest rates.
In the United States, the PCE price index is due to be released this week. The data may show inflation rising above 2%, while also showing signs of slowing.
In the Asia-Pacific region, China, Japan and India are among the countries due to release interest-rate decisions and inflation data. Data releases and policy decisions are expected in succession throughout the week.
Overall, key themes this week will include concerns about a slowdown in the global economy resulting from continued monetary tightening by the Federal Reserve, as well as developments in inflation policy.