Fed Chairman Warsh signals rate hike odds rise to 60% for September

Federal Reserve Chairman Kevin Warsh highlighted the possibility of an interest rate hike if inflation data does not improve. Following his speech, market odds for a September rate hike increased to 60%, up from 35% the previous day. Harvard professor Ken Rogoff noted the political risks involved, particularly regarding the midterms and potential backlash from President Trump. This development indicates a shift in the Fed's approach to managing inflation, which could impact bond yields and market sentiment for investors.