Jackson Hole Takes Center Stage as Fed Chair Warsh Prepares Debut Keynote Amid Sticky Inflation

Markets are closely watching the Jackson Hole economic symposium, where Federal Reserve Chair Kevin Warsh is set to deliver his first keynote address as Fed chief at 8:30 AM ET. The appearance is widely seen as a critical moment for Warsh to define his policy stance, with investors weighing whether inflation remains a persistent problem. Chicago Fed President Goolsbee said he is still working to understand whether recent inflation impacts will prove lasting, reflecting broader uncertainty within the Fed.

Currency markets showed the dollar recouping some earlier losses as U.S. inflation data provided support ahead of the symposium, pushing the euro below 1.1650 and gold to sub-$4,600 levels. Sterling also slipped as investors trimmed Bank of England rate-hike bets. Separately, ECB accounts released Thursday showed members felt recent data strongly supports a pause in rate increases, with the bank noting that price pressures have begun to ease and inflation components have improved, though energy price fluctuations remain a key risk to watch.

In Asia, a Bank of Japan deputy governor called for timely rate hikes and flagged upside inflation risks. On the U.S. data calendar Thursday, second-estimate Q2 GDP growth is forecast at 2.2%, up from the advance reading of 2.1%, alongside weekly jobless claims expected at 232,000 and a July goods trade deficit forecast of $98.2 billion.