Warsh Gives Remarks as Fed Holds Interest Rates Steady
Three of 12 policymakers favored a quarter-point hike as officials said inflation remains above target and markets priced a September increase.
- On Wednesday, the Federal Reserve held interest rates steady in the 3.50%-3.75% range, though three of the 12 Federal Open Market Committee members dissented, preferring a quarter-percentage-point hike.
- Fed Chief Kevin Warsh stated he has "no tolerance" for inflation running above the 2% target, a condition persisting for more than five years despite the central bank's efforts.
- The three dissenting regional bank presidents from Cleveland, Dallas, and Minneapolis created the largest policy divide in 10 years, signaling growing hawkishness within the committee.
- Traders now place a 57% probability on a rate hike at the September FOMC meeting, according to CME Group's FedWatch tool, down from 81% before Wednesday's announcement.
- During his press conference, Warsh emphasized a "new chapter" has begun, cautioning that five-plus years of elevated inflation cannot be cured by a single month of modest price decreases.
15 Articles
15 Articles
Stocks rebound from steep Fed sell-off as investors doubt whether Warsh will raise interest rates
Stocks rebounded Thursday morning after a steep sell-off following the Federal Reserve’s meeting, as investors grew doubtful about Fed Chair Kevin Warsh’s willingness to tackle inflation by raising interest rates.
Warsh vows not to ‘waver’ on inflation as divided Fed leaves rates unchanged
The Federal Reserve held interest rates steady on Wednesday, a choice that may intensify questions about how U.S. central bank chief Kevin Warsh will deliver on his commitment to bring inflation back down to the 2% target. The post Warsh vows not to ‘waver’ on inflation as divided Fed leaves rates unchanged appeared first on West Hawaii Today.
Despite high inflation and the oil crisis, the Central Bank Council decided on Wednesday, with nine votes to three, to leave interest rates unchanged again. The decision and sell-out of technology shares severely burdened Wall Street.
Gold rises 2% as Fed holds rates steady, markets parse Warsh's comments, Money News
Gold erased earlier losses to rise two per cent on Wednesday (July 29), after the US Federal Reserve held benchmark interest rates steady, sending the dollar and Treasury yields lower, while markets digested Chairman Kevin Warsh's remarks.Spot gold was up 1.9 per cent at US$4,101.99 (S$5,292) per ounce by 2.55pm EDT (Thursday, 2.55am SGT), after rising to its highest level...
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