Jackson Hole puts the dollar, gold and the Fed’s stagflation problem centre stage

Kevin Warsh gets his first Jackson Hole as Fed Chair in the same week the desk receives US core PCE and the second estimate of Q2 GDP on Wednesday, Australian CPI the same morning, and Canadian GDP on Friday. The Fed has an inflation problem and it is developing a growth problem, and trying to fix one risks making the other worse. Long dated yields hit their highest since 2007 before the Treasury doubled its buybacks, the dollar fell to a three month low against the euro and gold surged more than 3 percent. This week tests whether Warsh will choose a side.