Fed Chair Kevin Warsh under pressure to hike rates as inflation fails to cool: ‘Time to put up or shut up’
The Federal Reserve is expected to raise interest rates for the first time in three years. Traders have assigned a better than 90% probability that the Federal Open Market Committee will vote to increase the overnight funds rate by a quarter point. This comes as Chair Kevin Warsh faces pressure to address inflation that failed to cool in August, characterized by a 3.4 percent rise in consumer prices and core CPI figures that exceeded forecasts.
Listen to Live Briefing
Real-time synthesized voice briefing · Live Feeds Desk
- ✓ The Federal Reserve is expected to hike interest rates for the first time in three years.
What changed
Market data now indicates a better than 90% probability of a quarter point rate hike.
Live updates
-
Traders expect Fed rate hike for first time in three years
The Federal Reserve is expected to raise interest rates for the first time in three years. Traders have assigned a better than 90% probability that the Federal Open Market Committee will vote to increase the overnight funds rate by a quarter point. This comes as Chair Kevin Warsh faces pressure to address inflation that failed to cool in August, characterized by a 3.4 percent rise in consumer prices and core CPI figures that exceeded forecasts.
Why it matters
Rising oil prices and conflict involving Iran have increased gas costs, complicating the Fed's inflation battle. The central bank must now decide if these pressures necessitate a policy shift to prevent further price spikes.
What is confirmed
- The Federal Reserve is expected to hike interest rates for the first time in three years.
Still unconfirmed
- The FOMC will vote to raise the overnight funds rate a quarter point.
What to watch next
- The official Federal Open Market Committee policy decision next week
confidence 95%Sources used for this update (2)
- finance.yahoo.com — Fed meeting live updates: Anticipation builds with Fed expected to hike interest rates for first time in 3 years
- www.cnbc.com — The Federal Reserve is expected to hike rates for the first time in three years: Live updates
-
Fed Chair Kevin Warsh faces intense rate hike pressure
Federal Reserve Chair Kevin Warsh faces mounting pressure to raise interest rates following a hotter-than-expected inflation report. Consumer prices rose 3.4 percent in August, while US core CPI topped forecasts. The stubborn inflation figures arrive amid spiking oil prices, rising interest rates, and ongoing conflict involving Iran that continues to push up gas costs. Observers warn that even a cooler inflation report might not prevent the central bank from raising rates. Financial markets and analysts now scrutinize the Federal Reserve as officials remain on the fence ahead of the upcoming policy decision next week.
Why it matters
The resurgence in inflationary pressures complicates the central bank path forward as energy costs climb. Escalating fuel expenses driven by geopolitical conflict continue to filter through the broader economy, straining consumer purchasing power. Policymakers face difficult choices regarding borrowing costs as market participants demand decisive action to curb rising prices.
What is confirmed
- Federal Reserve Chair Kevin Warsh faces pressure to hike rates as inflation fails to cool.
- August inflation data shows consumer prices up 3.4 percent.
- US core CPI topped forecasts, bolstering the case for a rate hike.
- Wholesale prices rose and oil prices continued to climb.
Still unconfirmed
- Even a cooler inflation report may not be enough to keep the Fed from raising rates next week.
What to watch next
- The upcoming Federal Reserve policy decision next week.
- Further movements in oil prices and gas costs linked to the Iran conflict.
confidence 100%Sources used for this update (10)
- AP News — US wholesale prices rise in latest sign of stubborn inflation as oil prices continue to climb
- AP News — Inflation report lands amid spiking oil prices, rising interest rates and Fed on fence
- CNN — Even a cooler inflation report may not be enough to keep the Fed from raising rates next week
- ABC News - Breaking News, Latest News and Videos — Inflation report to show latest prices as Iran war pushes up gas costs
- reuters.com — US consumer inflation picks up in August
- Bloomberg.com — US Core CPI Tops Forecasts, Bolstering Case for Rate Hike
- WSJ — Inflation Comes In Hot
- PBS — News Wrap: August inflation report shows consumer prices up 3.4%
- Politico — Fed's Warsh faces new pressure to hike rates after inflation heats up
- New York Post — Fed Chair Kevin Warsh under pressure to hike rates as inflation fails to cool: ‘Time to put up or shut up’
Community Sentiment: How do you assess this situation?
Voice your perspective · Real-time aggregated sentiment from the Live Feeds community