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FOMC Preview: Fed Set To Hike 25bp In Recalibration Move
Sticky PCE inflation near 3.7% is pushing policymakers toward another rate increase, as better CPI readings have not changed the outlook.
- Federal Reserve Chairman Kevin Warsh and the FOMC likely made up their minds on interest rates for the September 16 meeting, facing intense pressure to raise rates after consumer prices marched higher last month.
- The Fed's preferred Personal Consumption Expenditures price index remains sticky at 3.7%, running well above the 2% target, while the CPI retraced to 3.4% in July.
- Addressing the policy path at Jackson Hole, Warsh emphasized the 2% price-stability objective is a "firm, fixed target" and policymakers must be confident underlying inflation is moving at sufficient speed.
- President Donald Trump, who appointed Warsh, has threatened to cut trade with certain countries if the Fed fails to lower rates, adding political pressure to the upcoming decision.
- Analysts anticipate the Federal Reserve may need to reverse rate cuts made last year, with some expecting at least one or two adjustments as consumer demand remains resilient.
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11 Articles
Fed Chairman Warsh faces pressure to ‘put up or shut up’ after hot CPI report
Federal Reserve Chairman Kevin Warsh faces intense pressure to raise interest rates at next week’s policy meeting after a highly anticipated inflation report showed U.S. consumer prices marched higher last month.
·Billings, United States
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Fed Chair Kevin Warsh under pressure to hike rates as inflation fails to cool: ‘Time to put up or shut up’
Back-to-back hotter-than-expected inflation readings may disappoint the majority of US central bankers who had been counting on price pressures easing on their own, setting the table for an interest-rate hike at the Federal Reserve's meeting next week and potentially more to follow.
·New York, United States
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Fed Chairman Kevin Warsh faces pressure to ‘put up or shut up’ after hot CPI report
A hotter-than-expected August inflation reading has pushed market expectations for a Fed rate hike next week above 85 per cent, while renewed oil price pressures could pave the way for further increases.
·Mumbai, India
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Coverage Details
Total News Sources11
Leaning Left1Leaning Right3Center2Last UpdatedBias Distribution50% Right
Bias Distribution
- 50% of the sources lean Right
50% Right
L 17%
C 33%
R 50%
Factuality
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