The Financial Times reports that Federal Reserve Chair Kevin Warsh is prepared to raise interest rates at the September Federal Open Market Committee meeting. The move would be conditional on upcoming data in the next few weeks confirming an acceleration in inflation, according to people familiar with the matter. An actual rate hike could heighten tensions with President Trump, who has been demanding rate cuts. Warsh has flagged the failure to meet the 2% inflation target as a concern and stressed the need to achieve price stability amid ongoing supply shocks, while refraining from commenting on the specific rate outlook.
Fed Chair Warsh ready to raise rates in September if inflation accelerates, signaling tighter policy.
Potential rate hike by Fed Chair Warsh would likely push yields up.
