By Chuck Mikolajczak
NEW YORK, Aug 28 (Reuters) - The U.S. dollar rose on Friday, extending gains to a session high after U.S. Federal Reserve Chair Kevin Warsh hinted that interest rate hikes may be needed should policymakers doubt that inflation is headed back toward the central bank's 2% target.
In his debut speech at the Jackson Hole symposium of central bankers, Warsh said the Fed will "have work to do" should inflation not appear to be cooling, in remarks that acknowledged financial conditions do not appear restrictive and marked the closest he has come to recognizing that interest rate hikes may be needed to ease price pressures.
Expectations for a rate hike of at least 25 basis points at the Fed's September meeting jumped to about 50% following Warsh's comments, up from about 35% before the speech.
"At least for the time being, we're getting more of the same Warsh-speak that we saw prior to any of the Fed decisions that he had been a part of. Meaning he's saying a lot, but none of this seems really substantive," said Eugene Epstein, head of trading and structured products at Moneycorp in Stamford, Connecticut.
#warsh #hikes #needed #least
NEW YORK, Aug 28 (Reuters) - The U.S. dollar rose on Friday, extending gains to a session high after U.S. Federal Reserve Chair Kevin Warsh hinted that interest rate hikes may be needed should policymakers doubt that inflation is headed back toward the central bank's 2% target.
In his debut speech at the Jackson Hole symposium of central bankers, Warsh said the Fed will "have work to do" should inflation not appear to be cooling, in remarks that acknowledged financial conditions do not appear restrictive and marked the closest he has come to recognizing that interest rate hikes may be needed to ease price pressures.
Expectations for a rate hike of at least 25 basis points at the Fed's September meeting jumped to about 50% following Warsh's comments, up from about 35% before the speech.
"At least for the time being, we're getting more of the same Warsh-speak that we saw prior to any of the Fed decisions that he had been a part of. Meaning he's saying a lot, but none of this seems really substantive," said Eugene Epstein, head of trading and structured products at Moneycorp in Stamford, Connecticut.
#warsh #hikes #needed #least
2 months ago
