Fed Chair Warsh signals rate hikes may be needed with inflation still elevated
Warsh said recent inflation readings have improved, but not enough to rule out further tightening, and traders raised September hike odds to 45.7%.
- Inflation remains above the 2% target at 3.7%, and policymakers must be confident inflation is slowing before halting rate hikes or else further action will be taken.
- Short-Term interest rates are emphasized as the Federal Reserve's primary tool, and financial conditions are currently not restrictive.
- Forward guidance on monetary policy should be reduced so that markets can form their own views based on incoming data rather than relying on Federal Reserve signaling.
- The Federal Reserve has not confirmed a rate hike at the upcoming September meeting, but market reactions indicate increased expectations of such action.
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476 Articles
Trump Loses His War to Make ZIRP Great Again
“If [Kevin Warsh] doesn’t lower interest rates I’m suing his ass off,” said President Donald Trump back in February after appointing Warsh to succeed Jerome Powell as Chair of the Federal Reserve. The Washington Post reported that “After a beat, he added, ‘I’m kidding.’ After another beat, he concluded, ‘Eh …’” Now to take a giant sip of Black Rifle Coffee and read the transcript of Fed Chair Kevin Warsh’s highly anticipated speech at Jackson Ho…
Federal Reserve President Kevin Warsh delivered a much stronger message on inflation on Friday, suggesting that the Fed could increase interest if price pressures do not decrease. Jackson Hole's speech also puts him in opposition to President Donald Trump, who calls for interest reduction, according to CNBC.
Donald Trump udpegede selv Kevin Warsh efter måneders pres for retiredsættelser. Nu har den nye Fed-chef sendt sandsynligheden for en snarlig amerikansk retestigning strenght i vejret
US President Trump had a clear expectation of the new Fed boss: lower interest rates. But now the signs are in trouble.
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