Algebris global credit portfolio manager Gabriele Foa said he expects Fed chair
KEVIN WARSH to deliver a material update on how the Fed will respond to inf in
Friday's Jackson Hole remarks, after mixed signals at July's press conference.
Foa said the Fed's avoidance of explicit forward guidance has left unusually
large uncertainty around its policy reaction function, steepening the U.S.
Treasury yield curve as long-end yields become the primary channel of
adjustment. He added this partly contradicts Bessent's effort to lower long-term
yields and may indicate weaker Fed–Treasury coordination than some markets
participants had expected.
