It’s the central bank’s first increase since 2023, a move that looked far from certain as recently as one week ago.
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All signs point to an interest-rate hike when the Federal Reserve’s monetary policy concludes this week’s meeting.
Since taking over as Fed chair in late May, Warsh has made it clear he is less comfortable providing forward guidance than his predecessor.
Consider the dream of the presumptively dovish Warsh delivering a rate cut this year now officially dead and buried (if it wasn’t already)
Bond investors are demanding higher yields, essentially raising the cost of borrowing no matter what the Fed decides to do in September.
The yield on 30-year Treasury bonds hit the highest in 19 years after Warsh spoke following the Fed decision to hold interest rates.
Consumer prices jumped 3.5% in June. That’s higher than the Fed’s preferred 2% inflation rate, but lower than the 4.2% May rate.
Wealth managers are keeping an optimistic, but realistic, outlook for the second half of the year.
Kevin Warsh, President Trump’s nominee for Fed chair, wants to make big changes at the central bank. Will he succeed?