What we learned from Warsh's Jackson Hole speech, and GE Vernova's CFO to retire
Article excerpt
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch - an actionable afternoon update, just in time for the last hour of trading on Wall Street. The stock market is failing to hold onto its morning gains, as Wall Street digests Federal Reserve Chairman Kevin Warsh's speech at the annual Jackson Hole symposium. The S & P 500 is down about 0.25%, while the tech-heavy Nasdaq is off about 0.4%. The Dow industrials are basically flat. Still, it's been a winning week for markets. Treasury yields are higher across the curve, with the market interpreting Warsh's speech - particularly his comment that the Fed has more "work to do" to tame inflation - as hawkish. Traders now see a nearly 60% probability of a rate hike at the Fed's Sept. 15-16 policy meeting, according to the CME Group's FedWatch tool. One day ago, that probability stood at just 35%. Warsh used his first Jackson Hole address to elaborate on his belief that central bankers shouldn't telegraph future policy moves to the market, a practice known in Fedspeak as "forward guidance." Warsh acknowledged that forward guidance was essential during the Great Recession, when the practice came about (Warsh was a Fed governor during that time). However, he said he believes it has now outrun its usefulness and, in some ways, does more harm than good. He argued it adds to the "noise" and drowns out...
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GE Vernova is getting a new finance chief as Ken Parks plans to retire next year.
