Warsh's Inflation Woes: Fed Fails to Deliver

Kevin Warsh, the Federal Reserve Chair appointed by President Donald Trump, was expected to tackle inflation when he took office. However, despite his promises, inflation remains a concern in the US economy.

The latest inflation data shows that the US inflation rate in August was 3.4%, unchanged from the previous month and higher than the Fed's target of 2%. This is a result of several factors, including energy prices, which have surged again due to the Iran war.

Energy inflation increased to 16.9% in August, with global energy supplies disrupted by the conflict. The Fed can only do so much to combat inflation, as it has limited power to raise or lower interest rates.

Bond investors expect a rate hike on September 15-16, but the impact of this decision is uncertain. If you believe that the Iran war will be resolved soon and gas prices will decrease, now may be a good time to buy bonds. The Vanguard Total Bond Market ETF (BND) can provide an easy way to add thousands of US bonds to your portfolio.