🇺🇸 Warsh commented in his Jackson Hole speech that he gauged underlying inflation by looking at the shares of the PCE basket that showed price increases above 3%. He noted these measures are below the post-pandemic highs but well above levels in the two decades preceding the pandemic.
The rise in US yields since Chair Warsh’s first FOMC meeting has been driven primarily by a higher term premium, while yield increases in other countries have been driven more by rising rate expectations.