Federal Reserve chairman Kevin Warsh used his first speech at the Jackson Hole Symposium to avoid committing to guidance on future US monetary policy, also known as the reaction function.
Warsh, who took over the central bank in May, stated the Fed would refrain from providing forward guidance or verbal cues about its intentions for interest rates.
He told the annual gathering of central bankers that the Fed will not "indulge a regime in which market participants are looking primarily to the Fed for their next trade".
This position comes as President Donald Trump pressures the Fed to lower interest rates, and as US Treasury Secretary Scott Bessent intervenes in bond markets to push down long-term borrowing costs.
Warsh was also ambiguous regarding inflation. He noted that while recent readings were better than expected, they did not indicate that "underlying trends have meaningfully improved".
Market reaction
The speech included hints that interest rates could rise if price pressures do not ease. Markets responded by increasing their bets on a rate hike next month, although the upcoming decision remains finely balanced.
Warsh has made it clear he wants to move the central bank away from its tradition of signalling future rate moves, preferring that markets make their own decisions.
A rate increase would likely meet resistance from President Trump.
Asda reports growth
In the UK retail sector, Asda is approaching its first quarterly growth in more than two years following the return of Allan Leighton as chairman after 20 years.
The supermarket reported higher food sales and improved online shopping, while continuing to compete on price with Aldi.
Leighton dismissed talk of a Burnham bounce, noting that customers are waiting for the October Budget before opening their purses too wide. He claimed that the main economic policy of the Labour government so far has been to "inhibit growth".
The chairman urged the government to develop an economic plan that provides confidence to consumers and businesses, and to stop adding further costs to businesses.
