Morgan Stanley’s Kelley Gerrity warns of market disappointment from Warsh’s Jackson Hole speech

Kevin Warsh has been Fed Chair for about three months, and Wall Street is already bracing for another communication misfire. Kelley Gerrity, fixed income client portfolio manager at Morgan Stanley Investment Management, told Bloomberg’s Real Yield that investors hoping for concrete policy signals from Warsh’s keynote at the Jackson Hole Economic Policy Symposium on August 27 are likely setting themselves up for disappointment. Warsh’s last major public appearance, a press conference on July 29, triggered a sharp selloff in the bond market after he left investors grasping for clarity on rate decisions. If his Jackson Hole speech follows the same playbook, the Treasury market could be in for another rough stretch. A new Fed chair, an old problem Warsh took office on May 22, 2026, after being nominated by President Trump. His tenure has coincided with inflation that stubbornly refuses to fall below the Fed’s 2% target, elevated Treasury yields, and a market that increasingly craves explicit forward guidance from the central bank. Warsh’s speech is expected to center on financial innovation and its implications for policy. Gerrity’s assessment aligns with broader Morgan Stanley analysi...