Warsh Hints at Rate Hike Without Near-Term Inflation Progress

Dow Jones
08/28

1117 ET - Fed Chairman Warsh has now positioned himself more firmly in the group of centrists on the FOMC that include Governors Waller and Cook, who have indicated that they are prepared to hike absent meaningful near-term progress on inflation, Capital Economics analysts say. "Hikes are not guaranteed, but Warsh is now at least suggesting he is on board with them if economic growth remains strong and monthly core PCE price growth remains a bit too firm, as we expect," says the firm. Warsh's comments leave the door open to a hike earlier than their current forecast of December, if the forthcoming price data are firm.

 

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