Fed Chair Warsh signals rate hikes may be needed with inflation still elevated
Warsh said the Fed may need to tighten policy if inflation does not move back to its 2% target, signaling a firmer stance on rates.
- Federal Reserve Chair Kevin Warsh suggested on Friday that the Fed may have to raise interest rates in the coming months, stating inflation is still too high.
- Warsh acknowledged recent reports "do not tell me that underlying trends have meaningfully improved," insisting the Fed must be confident inflation is moving toward its 2% target.
- Current interest rates aren't restricting activity, Warsh noted, citing robust consumer spending and business investment; rates must limit borrowing to effectively cool inflation.
- Wall Street investors are betting the Fed will hike rates by December, according to CME Fedwatch data, though Warsh's remarks don't necessarily signal rate increases soon.
- Treasury Secretary Scott Bessent recently attempted to lower Treasury bond yields after they hit a 19-year high, while comparisons persist to Jerome Powell, who navigated 9.1% inflation in 2022.
229 Articles
229 Articles
The Mexican peso’s strong run hits a snag following US inflation worries
The peso climbed above 17 to the U.S. dollar on Friday after U.S. Federal Reserve Chairman Kevin Warsh expressed concern about inflation. Mexico’s currency closed on Thursday at 16.9752, but the spot exchange rate reached 17.0151 shortly after Warsh’s speech at the Fed’s annual Jackson Hole (Wyoming) symposium, his first since being confirmed as Fed chairman on May 12. Kevin Warsh’s Friday speech at Jackson Hole, Wyoming, a traditionally key app…
The fact that Trump's head of the central bank could raise interest rates has so far been considered unlikely on Wall Street. Warsh's decisive speech on persistent inflation is a change of mood among investors.
Fed chief Warsh's speech at the annual central banker meeting was eagerly awaited. He was guilty of concrete indications for the next interest rate decision. There is more than mere restraint behind it. By Anne Schneider.
Fox Business
The New York LedgerWhat Warsh's Jackson Hole speech signals about where interest rates are headed
Federal Reserve Chair Kevin Warsh used his Jackson Hole Symposium keynote to reaffirm the Fed's 2% inflation target, calling PCE inflation at 3.7% concerning.
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