Fed Chair Warsh Signals Hike

Federal Reserve Chair Kevin Warsh signaled at the Fed’s Jackson Hole symposium that rate hikes may be needed, saying policymakers have “work to do” unless inflation moves toward the 2% target. He said inflation remains at 3.7%, called price stability the central bank’s “firm, fixed” objective and described the labor market as reasonably strong. Warsh did not commit to a rate decision, but fed funds futures put odds of a September hike near 60%, up from 35%, and the 2-year Treasury yield rose more than 12 basis points to 4.356%.