The Fed wants you to get used to higher interest rates

cityam09-07 22:37

JACKSON HOLE, WYOMING - AUGUST 28: Federal Reserve Chairman Kevin Warsh at the Jackson Hole Economic Symposium August 28, 2026 in Jackson Hole, Wyoming. During a speech at the conference Friday Warsh ...

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During a speech at the conference Friday Warsh ...</p>\n\n<a href=\"https://www.cityam.com/the-fed-wants-you-to-get-used-to-higher-interest-rates/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SKRE","symbol_name":"TUTTLE CAPITAL DAILY 2X INVERSE REGIONAL BANKS ETF","start_time":0,"source_url":"https://www.cityam.com/the-fed-wants-you-to-get-used-to-higher-interest-rates/","article_id":"2665807317","we_media_id":null,"thumbnails":["https://www.cityam.com/wp-content/uploads/2026/09/Kevin-Warsh-jackson-hole-e1788791833436.jpg?w=824&h=463&crop=1"],"rights":{"source":"cityam_highlight","url":"https://www.cityam.com/the-fed-wants-you-to-get-used-to-higher-interest-rates/","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2665807317","pubTimestamp":1788791857,"columns":[],"sourceInfo":{"source_id":"cityam_highlight","name":"cityam"},"weMediaInfo":null,"summary":"But how is the Fed to extricate itself from what Warsh noted Ben Bernanke described in April 2004 as a “hall-of-mirrors problem”?If the market watches the Fed and the Fed watches the market, the information value of both market prices and Fed communications is reduced to almost nothing.That feedback loop was useful during the deflationary bust after the Global Financial Crisis, when the world risked becoming stuck in a depressive doom loop and monetary policy was, to use another Fed Chair’s phrase, pushing on a string: unable to resurrect the velocity of money and revive animal spirits. The Fed had to guide markets towards sunnier climes or the dark days might have persisted.Higher inflation has also driven up yields across almost all developed-country government bond markets. This has been accompanied by ever more exclamatory headlines: in August, the US auctioned 30-year bonds at the highest yield since 2001;","collect":0,"end_time":0,"defaultTopTitle":"cityam.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SKRE":"TUTTLE CAPITAL DAILY 2X INVERSE REGIONAL BANKS ETF","HYG":"债券指数ETF-iShares iBoxx高收益公司债","UUP":"美元ETF-PowerShares DB","DBND":"DoubleLine Opportunistic Bond ETF","BIL":"债券指数ETF-SPDR Barclays美国1-3月国债","UDN":"做空美元指数-PowerShares","TBT":"债券20+美国债指数ETF-ProShares两倍做空","TLTW":"iShares 20+ Year Treasury Bond Buywrite Strategy ETF","TIP":"通胀债券指数ETF-iShares Barclays","VGSH":"美国短期国债ETF-Vanguard","GOVT":"iShares安硕核心美国国债ETF","BOXX":"ALPHA ARCHITECT 1-3 MONTH BOX ETF","GOLY":"Strategy Shares Gold Enhanced Yield ETF","GBIL":"Goldman Sachs Access Treasury 0-1 Year ETF","VCSH":"美国短期公司债-Vanguard","VGIT":"中期国债ETF-Vanguard","ZROZ":"PIMCO 25+ Year Zero Coupon U.S","TLH":"iShares安硕10-20年国债ETF","PBDC":"Putnam Bdc Income ETF","NGHT":"Nicholas Bitcoin and Treasuries AfterDark ETF","FAZ":"三倍做空金融ETF-Direxion","VCIT":"美国中期公司债-Vanguard","USHY":"iShares Broad USD High Yield Corporate Bond ETF","VGLT":"美国长期国债ETF-Vanguard","BOND":"Pimco Total Return ETF","SCHO":"嘉信短期美国国债ETF","UBT":"债券20+美国债-ProShares两倍做多","TBIL":"US Treasury 3 Month Bill ETF","SHV":"美国短期国债ETF-iShares","AGG":"债券指数ETF-iShares Barclays综合国债","JPST":"JPMorgan Ultra-Short Income ETF","KBE":"银行指数ETF-SPDR KBW","SHY":"债券指数ETF-iShares Barclays 1-3年国债","MUB":"美国市政债ETF-iShares","TMF":"3倍做多20年期以上国债ETF-Direxion","MINT":"PIMCO Enhanced Short Maturity Exchange-Traded Fund","IEI":"iShares Barclays 3-7 Year Trea","EDV":"美国延期国债ETF-Vanguard","LQD":"债券指数ETF-iShares iBoxx投资级公司债","TYO":"3倍做空7-10年期国债ETF-Direxion","BND":"债券指数ETF-Vanguard美国","BSV":"短期国债指数ETF-Vanguard"},"translate_title":"美联储希望你习惯更高的利率","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"BIL":1.5,"GOVT":1.5,"UUP":1.5,"BOXX":1.5,"PBDC":1.5,"TBIL":1.5,"UDN":1.5,"US3Y.BOND":1.5,"VGSH":1.5,"SHV":1.5,"LQD":1.5,"TLTW":1.5,"TMF":1.5,"US7Y.BOND":1.5,"BND":1.5,"DBND":1.5,"ZROZ":1.5,"US6M.BOND":1.5,"VCIT":1.5,"US30Y.BOND":1.5,"TLH":1.5,"BOND":1.5,"MINT":1.5,"VCSH":1.5,"BSV":1.5,"SHY":1.5,"SKRE":1.5,"HYG":1.5,"TIP":1.5,"US2Y.BOND":1.5,"SCHO":1.5,"TBT":1.5,"US12M.BOND":1.5,"GBIL":1.5,"FAZ":1.5,"USHY":1.5,"UBT":1.5,"MUB":1.5,"US10Y.BOND":1.5,"AGG":1.5,"US5Y.BOND":1.5,"GOLY":1.5,"EDV":1.5,"VGIT":1.5,"JPST":1.5,"NGHT":1.5,"IEI":1.5,"VGLT":1.5,"KBE":1.5,"TYO":1.5},"content_text":"JACKSON HOLE, WYOMING - AUGUST 28: Federal Reserve Chairman Kevin Warsh at the Jackson Hole Economic Symposium August 28, 2026 in Jackson Hole, Wyoming. During a speech at the conference Friday Warsh expressed concern about high inflation. (Photo by Natalie Behring/Getty Images) Federal Reserve Chair Kevin Warsh is urging markets to stop relying on central bank guidance and instead independently interpret economic data, signalling a shift toward a paradigm where higher interest rates are accepted as a component of a high-growth, prosperous economy, says Helen Thomas“We should not indulge a regime in which market participants are looking primarily to the Fed for their next trade.” Despite this warning from new Federal Reserve Chair Kevin Warsh in his keynote Jackson Hole address last Friday, the market preferred once again to latch onto the familiar simple question of whether he had been dovish or hawkish, plumping for the latter.Warsh certainly noted with sanguinity that “business capital expenditures – the seed corn of future economic growth – are rising rapidly” and “the labour markets are consistent with full employment”. But that doesn’t mean an aggressive hiking cycle is on its way. It might, or it might not. The point is that Warsh doesn’t want to be the one signalling it to the market. He wants investors to make up their own minds: “Market participants themselves should be tracking real information across the economy. They should draw their own conclusion.”\n\nBut how is the Fed to extricate itself from what Warsh noted Ben Bernanke described in April 2004 as a “hall-of-mirrors problem”? If the market watches the Fed and the Fed watches the market, the information value of both market prices and Fed communications is reduced to almost nothing.That feedback loop was useful during the deflationary bust after the Global Financial Crisis, when the world risked becoming stuck in a depressive doom loop and monetary policy was, to use another Fed Chair’s phrase, pushing on a string: unable to resurrect the velocity of money and revive animal spirits. The Fed had to guide markets towards sunnier climes or the dark days might have persisted.\n\n\n\n\n\n\nFree Thinking - City AM Opinion Newsletter\nGet weekly sparky insight and expert commentary on markets, entrepreneurship and innovation from City AM’s Opinion Editor, delivered every Saturday.\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nBut we are no longer in a deflationary world. Nowhere is that clearer than Japan, where huge amounts of debt caused little concern during two lost decades of negligible inflation. For the last four years, Japanese headline inflation has run above the Bank of Japan’s target, prompting the BOJ to raise interest rates five times to their highest level in thirty years.\n\nHigher inflation has also driven up yields across almost all developed-country government bond markets. This has been accompanied by ever more exclamatory headlines: in August, the US auctioned 30-year bonds at the highest yield since 2001; the French 10-year hit its highest level since 2008; and so on.The US spends more on interest than on defenceThe concern is a fair one. The more heavily indebted governments must pay to service their debt, the less room they have for other spending commitments. The US now spends more on interest than on defence, with both at eye-watering levels above $1 trillion. Annual US interest expense has risen to a record 18.5 per cent of federal government revenue, above the previous peak of 18.4 per cent set in 1991. It is not just the scale that matters but the speed: the proportion of GDP spent on interest payments has quadrupled in four years.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":false,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.49.0","shortVersion":"4.49.0","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2665807317","isCrawlerRequest":true}