Morgan Stanley expects Fed Chair Warsh to focus on strategic direction at Jackson Hole, avoiding short-term rate guidance

English summary

Morgan Stanley expects Fed Chair Warsh to outline strategic direction rather than short-term rate guidance in his Jackson Hole speech on August 28, possibly not addressing market focuses such as whether to act at the September meeting or the December rate level. If so, short-term rate pricing will continue to anchor on economic data, and the risk of sharp market repricing after the speech decreases.