Warsh Signals Hawkish Fed Ahead | Raleigh News

Federal Reserve Chair Kevin Warsh delivered a firm warning on inflation in his first major speech since taking the helm, signaling a more aggressive stance that’s already rattled markets. With traders now pricing in a 60% chance of a quarter-point rate hike next month — up from 35% — Warsh emphasized that underlying inflation hasn’t cooled enough and that the Fed won’t wait for it to hit its 2% target. While some economists still see signs of cooling, the market is leaning into Warsh’s hawkish view. He also hinted at abandoning explicit rate guidance, calling it a “hall of mirrors,” and noted AI is now on the Fed’s radar — though not influencing immediate decisions. The final call remains uncertain, pending key upcoming employment and consumer price data.

Listen in comfort:
Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn.

Advertise on DNN:
[email protected]

This is an automated, high-level news summary based on public reporting.
Report issues to [email protected].

View sources & latest updates:
https://sources.thednn.ai/ed739a51dea14f7f