Warsh Prepares for Rate Hike as Inflation Fears Persist

Federal Reserve Chairman Kevin Warsh is reportedly preparing to support an interest rate hike at the September meeting if inflation data remains high.

This comes from a Financial Times report citing sources close to Warsh, who are open to tightening monetary policy if inflation expectations rise and further borrowing costs increase.

The news has strengthened market expectations of an interest rate hike, with the probability of a 25 basis point rate hike in September now at around 56.7 percent.