Why Wall Street can keep rising even as the Fed turns hawkish

[NEW YORK CITY] US Federal Reserve chair Kevin Warsh’s first Jackson Hole address on Aug 28 contained a message that, under normal circumstances, might have seriously unsettled Wall Street.

He stressed that inflation remains too high and reaffirmed the Fed’s commitment to its 2 per cent target.

Most significantly, he said that unless the central bank was confident underlying inflation was moving towards that objective “clearly and at sufficient speed”, the Fed had “work to do”.