Federal Reserve Chair Kevin Warsh is set to deliver the first keynote speech of his chairmanship at the annual Jackson Hole Economic Policy Symposium on Friday amid uncertainty over stubborn inflation.

Policymakers from the Fed and central banks around the world will gather in Jackson Hole, Wyoming, to discuss monetary policy and the economy, with Warsh scheduled to speak Friday morning. The symposium often offers a chance for central bankers to frame their thinking for markets, but Warsh has already signaled a preference for less forward guidance, making this year’s appearance especially closely watched.

Warsh, who was confirmed as Fed chair in May and has since led his first two monetary policy meetings, has taken steps to end the use of forward guidance about future policy moves. Those changes have included removing forward-looking comments from post-meeting statements and appointing a panel to review Fed communications.

Because Warsh has been reluctant to engage in forward guidance, his speech is expected to be closely watched for any signals about how his leadership could affect Federal Reserve operations and how policymakers may approach interest rate decisions. Investors and economists will also be listening for any sign of how he plans to balance inflation pressures with signs of a still-evolving labor and growth outlook.

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Gregory Daco, chief economist at EY-Parthenon, told FOX Business that there is a "tremendous degree of uncertainty as to what he will or won't say" in his first Jackson Hole speech.

"I think there is tremendous appetite, at the same time, for him to clarify some of his views, come back down to earth when it comes to his communication around economic data, around inflation, around employment and around policy," Daco added.

He said Warsh could offer "some sort of framework guidance that would help assuage market fears that he's completely detached from traditional policymaking, and that he's not necessarily looking at economic data as the right levers to be conducting monetary policy."

Daco pointed to developments in the bond market, where yields are near recent highs, as evidence of a desire for more guidance because "part of the recent rise in yields has been tied to this lack of credibility around policymaking at the Fed, and in particular, a lack of transparency from the Fed chair."

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Daco noted that although Warsh has said the Fed will deliver 2% inflation amid above-target readings, he also said at the most recent press conference after the Federal Open Market Committee (FOMC) left rates unchanged that he sees this as a period of "watchful thinking" and observing data to assess inflation's impact.

He also pointed to Warsh's comments in June that markets and Treasury yields were signaling investors were convinced inflation was coming down, before Warsh said in July that higher yields were contributing to the Fed's tighter policy.

"You can't have both, right? If you want a pure signal from markets, you have to be honest about what markets are signaling, and I think that hasn't occurred so far," Daco said.

At the FOMC's most recent meeting in July, policymakers left the benchmark federal funds rate unchanged at a range of 3.5% to 3.75%, following a 9-3 vote with three dissenters favoring a 25-basis-point rate hike amid elevated inflation.

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Inflation has remained stubbornly high, with the Fed's preferred gauge — the personal consumption expenditures (PCE) index — holding at 3.7% year over year for the headline figure in July, while core PCE, which excludes volatile food and energy prices, was also unchanged at 3.3%.

Both readings remain well above the Fed's 2% inflation target, and the market has therefore viewed a 25-basis-point hike before the end of the year as the most likely outcome. The CME FedWatch tool shows a 45% chance of a hike by the FOMC's December meeting, compared with a 27.3% chance of rates holding steady through the end of the year.

Daco said his firm continues to expect the Fed to remain on hold for the rest of the year, arguing that policymakers are likely to stay cautious but not necessarily favor higher rates in the next few meetings.

He added that, consistent with Warsh's aversion to forward guidance, the Fed chair is likely to avoid boxing himself into an interest-rate move in his Friday keynote speech in Wyoming.

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"I doubt he's going to want to confirm in any way, shape or form any future action. He's going to talk about a good policy fight at the FOMC table, and he's not going to want to essentially corner himself into any particular decision when it comes to September," Daco said.