Warsh’s hawkish signal lifts rate-hike expectations, though September timing remains uncertain

Kevin Warsh has signaled that the Federal Reserve may need to raise interest rates if inflation remains above its target, a stance markets interpreted as hawkish.¹Backed by 1 sourcesReuters Market pricing put the probability of a September rate hike at about 60%, up from roughly 40% previously.¹Backed by 1 sourcesReuters

Barclays now expects two additional Federal Reserve rate hikes this year following Warsh’s speech.¹Backed by 1 sourceswkzo.com Other market participants are not convinced that Warsh’s comments necessarily mean a September hike will occur.¹Backed by 1 sourcesCNBC