Fed's Warsh Left no Doubt About Focus on Inflation
Dow Jones
9 hours ago
0515 GMT - Inflation framing was the centrepiece of Federal Reserve Chairman Kevin Warsh's speech, referenced several times in the context of the work still to do and adherence to the 2% price target, Impax Asset Management's Ross Pamphilon says in a note. "We expect a much quieter Fed with a belief that forward guidance is ill-suited to normal times," the fixed income CIO says. While Warsh gave no direct signal for September, "this speech does increase the odds of a hike," Pamphilon says. Overall, the speech was clearly hawkish and led to a flattening of the curve, with the front end selling off. "The speech left zero doubt with respect to the inflation focus."
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