Warsh messing with the algos… says "hike" 3 times in the first 5 paragraphs pic.twitter.com/wmThgZazaS
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) August 28, 2026
Warsh’s speech was highly anticipated, even after the last Fed policy meeting in July, when economists say he provided a muddy picture about his willingness to raise interest rates to fight inflation. On Friday morning at the conference, sponsored by the Kansas City Federal Reserve, Warsh appeared to address those concerns. “Price stability is not self-executing, nor is inflation necessarily mean-reverting. It is the Fed’s job to deliver stable prices,” he said.
The bond market’s response to the speech was muted. Expectations of a September Fed rate hike rose to nearly 60% from below 40%, but that’s still below the chances seen for the meeting back in July. Economists say the key determinant could be what the next round of inflation data shows.
https://www.morningstar.com/economy/warsh-sounds-hawkish-will-there-be-september-rate-hike
10 year bond yield ripping higher. Nearing the current cycle’s high of 4.75%.
Bessent is crapping his pants right now 💀 pic.twitter.com/cy5Q9fz4H5
— QE Infinity (@StealthQE4) August 28, 2026
WARSH PUTS INFLATION FRONT AND CENTER
Fed Chair Kevin Warsh struck a hawkish tone, saying the Fed’s priority must remain price stability.
Warsh said summer inflation data improved, but underlying trends have not meaningfully changed. The Fed must be confident inflation is…
— *Walter Bloomberg (@DeItaone) August 28, 2026