US stocks moderated from earlier gains in midday trading on Friday as investors digested Kevin Warsh's first keynote address at the annual Jackson Hole Symposium, with the Fed chairman's comments interpreted as mildly hawkish in the near term.
The Dow Jones Industrial Average (^DJI) held onto a gain of 0.2%, while the S&P 500 (^GSPC) hung just above the flat line. The Nasdaq Composite (^IXIC) declined by 0.2% after rising by as much as 0.5% earlier in the day.
Even if market participants didn't necessarily get all of the clarity they were looking for, Warsh's comments were taken as hawkish enough to send yields on short-term Treasurys higher by several basis points.
"None of these measures are perfect, but they all tell a similar story: Inflation is running above our 2% target," Warsh said. "So the Fed's predominant focus right now should be on prices."
The most recent PCE inflation reading — the Fed's preferred metric for price change — showed that the 12-month change in prices stands at 3.7%, with the so-called core annual measure reading at 3.3%.
#above
The Dow Jones Industrial Average (^DJI) held onto a gain of 0.2%, while the S&P 500 (^GSPC) hung just above the flat line. The Nasdaq Composite (^IXIC) declined by 0.2% after rising by as much as 0.5% earlier in the day.
Even if market participants didn't necessarily get all of the clarity they were looking for, Warsh's comments were taken as hawkish enough to send yields on short-term Treasurys higher by several basis points.
"None of these measures are perfect, but they all tell a similar story: Inflation is running above our 2% target," Warsh said. "So the Fed's predominant focus right now should be on prices."
The most recent PCE inflation reading — the Fed's preferred metric for price change — showed that the 12-month change in prices stands at 3.7%, with the so-called core annual measure reading at 3.3%.
#above
18 days ago
