Warsh strikes a hawkish tone at Jackson Hole as the door to a September rate hike opens wider
๐ฆ Fed Chair Kevin Warsh said progress in bringing inflation back to the 2% target remains modest, with 12-month PCE inflation at 3.7% and the six-month annualized rate at 4.1%.
๐ He stressed that the Fed must be confident underlying inflation is moving toward target at a sufficient pace, otherwise the central bank still has work to do. At the same time, unemployment remains at 4.1% and the economy is still described as resilient.
๐ต Warsh also noted that credit markets are showing few signs of policy restraint, reinforcing the view that financial conditions are not yet meaningfully restrictive.
๐ The speech did not commit to a September hike, but markets raised the probability to around 50โ55%, while the 2-year Treasury yield climbed roughly 7โ10 basis points. Upcoming CPI, PCE and labor data will be key to the Fedโs next move.
#FederalReserve
$BTC
๐ฆ Fed Chair Kevin Warsh said progress in bringing inflation back to the 2% target remains modest, with 12-month PCE inflation at 3.7% and the six-month annualized rate at 4.1%.
๐ He stressed that the Fed must be confident underlying inflation is moving toward target at a sufficient pace, otherwise the central bank still has work to do. At the same time, unemployment remains at 4.1% and the economy is still described as resilient.
๐ต Warsh also noted that credit markets are showing few signs of policy restraint, reinforcing the view that financial conditions are not yet meaningfully restrictive.
๐ The speech did not commit to a September hike, but markets raised the probability to around 50โ55%, while the 2-year Treasury yield climbed roughly 7โ10 basis points. Upcoming CPI, PCE and labor data will be key to the Fedโs next move.
#FederalReserve
$BTC
