Key speech to be delivered this week at Jackson Hole said to focus on productivity and demographics in the US. Plus, how do you vaccinate 1,000 little penguins in the wild?
Good morning. The new US Federal Reserve chair, Kevin Warsh, faces a critical test this week amid anxiety in government bond markets over inflation and Donald Trump’s tax and spending plans. As the world’s most powerful central bank prepares for its annual Jackson Hole conference, analysts said bond traders would be looking for signals from Warsh over its commitment to fighting inflation.
However, Warsh has signalled reluctance to use his speech on Friday for the “more traditional setup” of dropping hints over how the US central bank may respond to inflationary pressures when its officials next meet to set interest rates in September and December. Instead, he has said his Jackson Hole speech could be “focused on bigger questions”, including concerns over productivity and demographics.
Why is this a crucial moment for the Fed? The gathering of the world’s most powerful central bankers in the Grand Teton national park is a blue riband event in the financial calendar. However, the meeting comes as selling pressure intensifies in the $30tn US government debt market despite efforts by the Treasury secretary, Scott Bessent, to assuage investor worries after he committed to at least double Washington’s purchases of US Treasury bonds.
What did Joshua Aviles say about his father’s arrest? “I’ve been deployed for over nine months, out at sea in the Middle East aboard the USS Abraham Lincoln, fighting for a country that has given me everything. I just got a call that my dad was taken by ICE. We have done everything through immigration to get his green card approved, and we are just waiting. This is heartbreaking for me. I don’t know how I can mentally continue working 12+ hour days knowing that my dad is somewhere, possibly being treated like a criminal.”
How did the DHS respond? The DHS said Luis Manuel Aviles Roa entered the US illegally and would remain in immigration and customs enforcement detention pending removal proceedings. “Having a family member in the military is not a free pass to violate our nation’s laws,” the DHS said.
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