Federal Reserve Chair Kevin Warsh used an Aug. 28 speech at the Jackson Hole symposium to frame the Sept. 15-16 policy meeting as a decisive point in the central bank’s effort to contain inflation. According to CME FedWatch data cited in the report, the implied probability of a 25-basis-point rate increase in September jumped from about 35% before his remarks to a range of 57% to 62% afterward.
Warsh said bringing inflation under control remains the Fed’s top priority and stated that the central bank still has "work to do" if core price pressures do not show a clear decline. He also declined to offer traditional forward guidance, saying policy should be driven by incoming data. The report noted that the July Federal Open Market Committee meeting ended with a 9-3 vote to keep rates in a 3.5% to 3.75% range, the first time in a decade that three dissenting votes were recorded. It added that the August CPI reading, due on Sept. 11, will be a key input before the September decision, according to CryptoBriefing.
Federal Reserve Chair Kevin Warsh said in a hawkish speech on Aug. 28 at the Jackson Hole symposium that the Sept. 15-16 policy meeting will be a key moment in the central bank’s fight against inflation.
CME FedWatch data cited in the report showed that the implied probability of a 25-basis-point rate hike in September rose sharply after his remarks, climbing from about 35% beforehand to 57% to 62%.
Warsh said controlling inflation remains the Fed’s top priority. If core price pressures do not fall back in a clear way, the Federal Reserve still has "work to do." He also declined to provide traditional forward guidance and argued that the data should determine the policy path.
At the July Federal Open Market Committee meeting, policymakers voted 9-3 to keep rates in a 3.5% to 3.75% range. The report said that was the first three-dissent outcome in a decade.
The report added that the August CPI reading, scheduled for release on Sept. 11, will be a key variable ahead of the September decision.
The source cited for the report was CryptoBriefing.
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