Rubenstein Says It Is Too Early to Judge Warsh as Markets Price 90% Odds of a Hike

3 articles · Updated · Yahoo Finance · Sep 14

David Rubenstein said Kevin Warsh’s communication style is too early to judge, even as investors push for clearer guidance from the new Fed chair.
Warsh’s Jackson Hole debut instead stressed inflation still runs above the Fed’s 2% target and suggested financial conditions may not yet be restrictive enough.
That hawkish message, reinforced by last week’s hot CPI report, drove Treasury yields higher and left traders pricing nearly a 90% chance of a rate hike this week.
Goldman Sachs now expects a 25-basis-point increase, while chief economist Jan Hatzius said markets are still trying to read a Fed offering less information than investors prefer.

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Could Warsh's quieter strategy actually force a devastating spike in mortgage rates before stubborn inflation is finally tamed?

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