- Prediction markets put the odds of a 25-basis-point September hike near 48%, while CME Fed funds futures implied a nearly 56% probability.
- Warsh said recent softer inflation and employment data were insufficient to confirm a durable return toward the Fed’s 2% target.
- The 2-year Treasury yield rose to its highest level since late July as short-term rate expectations repriced higher.
Quotes
“We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That's our job, our mandate and our charge to keep.”