Jackson Hole Debut: Fed Chair Worsh "Price Stability is Top Priority"... September Rate Hike Talk

🗂Key Remarks Summary & Main Messages Chair Worsh stated, "The past monetary policy approach of forward guidance has expired," explicitly indicating a commitment to a strictly 'data-dependent' response without pre-declaring specific interest rate paths. Inflation Concerns Reaffirmed: Citing the July US Consumer Price Index (CPI) growth rate and Q2 GDP expansion exceeding market expectations, he strongly suggested that policy rates may be kept at restrictive levels or further tightened until inflation settles at the target of 2%. 🗂Specific Macroeconomic Background & Market Impact Policy Discord with US Treasury: Amidst the US Treasury's decision to expand its annual buyback of long-term government bonds to $4 billion starting in September to curb soaring yields, Chair Worsh's hawkish remarks blurred the lines between the central bank and the Treasury, further amplifying volatility in the bond market.