Warsh lifts odds of a September Fed rate hike as inflation stays above target
What's next: A CPI report due Sept. 11 could sway the Sept. 15-16 decision after traders pushed hike odds above 50%.
Federal Reserve Chair Kevin Warsh signaled the central bank could raise interest rates as soon as September if inflation does not cool enough, sharpening focus on the Fed’s next policy meeting. Speaking at the Jackson Hole symposium in Wyoming, Warsh said recent price data had not “meaningfully improved” the inflation picture and stressed the Fed must be confident underlying inflation is moving to its 2% goal at sufficient speed. Consumer prices rose 3.4% in July, while another inflation gauge tracked by the Fed ran at 3.7%. After the speech, futures markets increased the implied probability of a September rate hike to above 50%, with economists pointing to the Aug. CPI report on Sept. 11 as a key test before the Sept. 15-16 meeting.