Peter Schiff Says Warsh’s Hawkish Comments Wrongly Drove September Fed Hike Bets
Summary
- Peter Schiff said markets are wrongly pricing in the possibility of a September rate hike after hawkish comments from Federal Reserve Chair Kevin Warsh.
- Schiff said Warsh’s remarks had created false expectations for a benchmark rate increase in September.
- The interest-rate futures market is currently pricing in a 56% chance that the Fed will raise its benchmark rate by 25 basis points in September.
Forecast Trend Report by Period
Peter Schiff said markets are wrongly pricing in the possibility of a Federal Reserve interest-rate increase in September after hawkish comments from Fed Chair Kevin Warsh, Cointelegraph reported on August 28.
Schiff said Warsh’s remarks had created false expectations for a September increase in the benchmark rate.
Warsh had said earlier that inflation remains elevated and stressed that restoring price stability is the Fed’s top priority. He also said the central bank’s 2% inflation target, based on the personal consumption expenditures price index, is “firm and fixed.”
Interest-rate futures are currently pricing in a 56% chance that the Fed will raise its benchmark rate by 25 basis points in September.
JH Kim
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