Kevin Warsh Faces a ‘No-Win Situation’ On Rates

“Kevin Warsh cleared a crucial hurdle at his first appearance as the Federal Reserve’s chairman at its annual conference in Jackson, Wyo,” the New York Times reports.

“He offered his most comprehensive views to date about the state of the economy. He cleared up confusion about the central bank’s commitment to getting inflation down to its 2 percent target after sending mixed messages the month prior. And he acknowledged that the Fed might have ‘work to do’ to make good on that pledge, suggesting a readiness to raise interest rates if price pressures do not ease.”

“But the path ahead for Mr. Warsh is a precarious one. Financial markets now see a quarter-point increase at the central bank’s next meeting on Sept. 15-16 as more likely than not, leaving Mr. Warsh with a tough decision whether to follow through with action.”

Financial Times: Warsh puts Fed on collision course with Trump ahead of midterms.