JPMorgan Chase now projects that the Federal Reserve will raise interest rates in December, moving up its timeline from an earlier expectation of the second half of 2027.

"During Warsh's press conference, he again failed to clearly outline how he intends to achieve his aggressively stated determination to combat inflation," wrote Chief US Economist Michael Feroli in a report. The Chair also raised questions about whether the Personal Consumption Expenditures (PCE) index will remain the Fed's inflation target.

"Both of these points cast doubt on whether the new Chair can achieve his goal of lowering inflation." This, in turn, could create a greater sense of urgency among other Federal Reserve Committee members, prompting them to fulfill their responsibilities.

"We do not view this revision as the market 'pressuring' the Fed, but rather as another challenge compelling the central bank to act in order to preserve its credibility."