Fed Hike Odds Jump to 66% as Warsh Signals Aggressive Rate Moves

Federal Reserve Chair Kevin Warsh's hawkish keynote at Jackson Hole has sent shockwaves through the market, pushing the probability of a September rate hike to 66%.

Warsh reaffirmed the 2% PCE target as 'a firm, fixed target,' and stated that summer's better-than-expected inflation prints 'do not tell me that underlying trends have meaningfully improved.'

Veteran investor Louis Navellier disagrees with the prospect of an immediate hike, arguing that the Fed cannot control inelastic food and energy inflation.

LPL Financial Chief Economist Jeffrey Roach sees a strong case for continued hawkishness, citing 'stubbornly elevated services inflation' and 'persistent consumer price pressures.'