Credit Agricole on Fed Warsh Comments Yesterday - FJElite
Fed Chair Kevin Warsh did not tip his hand during the three-hour testimony before the House Financial Services Committee yesterday. A key message was that the FOMC has “no tolerance for persistently elevated inflation”.
Rates investors took comfort in the Fed’s commitment to price stability. Treasuries kept earlier gains from the weaker-than-expected June CPI report and reversed some Fed tightening premium over the coming months.
In reference to the June CPI print, Warsh acknowledged progress but downplayed the data, emphasising no cherry-picking and plenty of work ahead.