Markets will watch whether Wosh clarifies the vague, evasive answers that roiled
markets in July; Natixis analysts expect him to frame any rate increase as
necessary to return inflation to target. Inflation narrative will be pivotal: if
Wosh treats energy and tariff-driven inflation as one-off supply shocks, markets
may ease hawkish pricing; if he highlights second-round effects or inflation
expectations, tightening risk will rise. His handling of political sensitivity
matters — expect scrutiny of any response to Trump’s calls for rate cuts,
emphasis on FOMC independence, and whether he stresses data-dependence or avoids
naming the president. Watch for changes to his communication posture after a
hawkish turn at Jackson Hole and a history of limited forward-rate commentary;
renewed insistence on zero tolerance for inflation would lift rate repricing.
With the 10y UST yield already above 5% (Sept. 14), traders will also look for
comments on further sell-offs and on fiscal- or inflation-risk premia in bond
markets.
