08/28/2026
Warsh painted a robust picture of the US economy, noting that economic growth appears to have strengthened, while characterizing the labor market as stable at full employment. He underscored that inflation remains too high and that while this summer's inflation readings were better than expected, they "do not tell me that underlying trends have meaningfully improved." To us, this sounds like interest rates will be rising in the near future.
Markets knew they weren't going to get an answer to what the Federal Reserve would do next — so-called forward guidance — when the central bank's chairman Kevin Warsh spoke Friday morning.
