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Fed Chairman Warsh Faces Pressure to ‘Put up or Shut up’ After Hot CPI Report
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 Federal Open Market Committee face intense pressure to raise interest rates at their Wednesday, September 16 meeting after consumer prices marched higher last month.
- While the CPI retraced to 3.4% in July, the Fed's preferred Personal Consumption Expenditures price index remains sticky at 3.7%, running well above the Federal Reserve's 2% target.
- 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 interest rates, adding political pressure to the decision.
- Economists suggest the Federal Reserve may need to reverse rate cuts made last year, with some analysts expecting at least one or two adjustments as consumer demand remains resilient.
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The Billings Gazette+4 Reposted by 4 other sources
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 Sources17
Leaning Left1Leaning Right7Center2Last UpdatedBias Distribution70% Right
Bias Distribution
- 70% of the sources lean Right
70% Right
C 20%
R 70%
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