BofA: The Communication Paradox Between Warsh and Waller on Fed Rate Paths

A BofA Securities report dated September 4, 2026, highlights a communication paradox between Federal Reserve Chair Warsh’s hawkish Jackson Hole speech and Governor Waller’s dovish remarks. Warsh suggested a shift toward a more aggressive policy path to restore credibility, while Waller emphasized state-dependent policy rules. BofA argues that increased transparency reduces the need for market guidance. The report also forecasts the ECB to end its tightening cycle in September, notes rising debt concerns in the U.S. as interest payments exceed defense and he