Inflation Could Top 4% This Week. The Bond Market Wants Fed Chair Warsh To Prove He'll Fight It.
Kevin Warsh, the new chair of the Federal Reserve, may need to defy President Trump and talk about rate hikes next week. Will new Federal Reserve Chair Kevin Warsh follow President Trump or the market?Investors are growing impatient with inflation that looks unlikely to be tamed on its own.That anxiety can be seen in the reaction to Friday's strong jobs report for May, which sent highflying tech stocks sharply lower and bond yields higher.Volatility eased on Monday, but investors still have May's consumer-price index on deck for Wednesday. It's expected to reach 4.2% based on current forecasts, up from a 3.8% yearly rate a month before and well above the Federal Reserve's 2% target.Fed officials were hoping inflation would be transitory over the past few years, Tipp said. "That hasn't worked out.". "The market is not going to have a problem with a very slow, cautious approach to rate hikes to make sure there is price stability," Tipp said.That could continue, but much also hinges on in