Forex
Warsh Signals Two More Rate Hikes Amid Stubborn Inflation Concerns
US Federal Reserve Chair Kevin Warsh held a press conference after the FOMC decision to raise the Funds Target Range to 3.75%, 4.00%, as expected.
The Fed Chair expressed hawkish views, citing concerns about stubbornly high inflation and justifying the rate hike.
Warsh noted that 'inflation trends were not passing the test' and that he had seen little to change this situation.
The FOMC removed a dose of accommodation, and Warsh emphasized that conditions are not restrictive. He stated that the summer data does not indicate an improvement in inflation.
Warsh's comments pushed the US Dollar Index (DXY) above 100.00 as market participants bet on two more Fed rate hikes by year-end.