UK media: Warsh sticks to cautious market guidance and may consider a September rate hike if inflation is strong
August 6 — According to the Financial Times, even after sparking a major sell-off in Treasuries by deciding not to disclose too many details about his interest-rate strategy, Federal Reserve Chair Warsh has continued his trademark concise communication style. People close to Warsh said he acknowledged making some mistakes during his first 10 weeks at the helm of the world’s most important central bank, including failing to reinforce his key message on price stability and causing confusion over whether his long-term plans to reform the Fed would affect near-term policy decisions. But they insisted these mistakes were not enough to justify overturning Warsh’s plans to reform the Fed. People familiar with the matter also revealed that if inflation data released in the coming weeks is strong and market expectations for higher borrowing costs rise accordingly, Warsh is prepared to raise interest rates at the September meeting. The people familiar with the matter added that although the Fed chair has raised the possibility of shrinking the central bank’s $6.7 trillion balance sheet to tighten monetary policy, interest rates remain the primary tool for now—and, if necessary, will be used at upcoming meetings. #MoonshotAIPreIPOs开启
August 6 — According to the Financial Times, even after sparking a major sell-off in Treasuries by deciding not to disclose too many details about his interest-rate strategy, Federal Reserve Chair Warsh has continued his trademark concise communication style. People close to Warsh said he acknowledged making some mistakes during his first 10 weeks at the helm of the world’s most important central bank, including failing to reinforce his key message on price stability and causing confusion over whether his long-term plans to reform the Fed would affect near-term policy decisions. But they insisted these mistakes were not enough to justify overturning Warsh’s plans to reform the Fed. People familiar with the matter also revealed that if inflation data released in the coming weeks is strong and market expectations for higher borrowing costs rise accordingly, Warsh is prepared to raise interest rates at the September meeting. The people familiar with the matter added that although the Fed chair has raised the possibility of shrinking the central bank’s $6.7 trillion balance sheet to tighten monetary policy, interest rates remain the primary tool for now—and, if necessary, will be used at upcoming meetings. #MoonshotAIPreIPOs开启
