Fed's Warsh faces challenge whether inflation is a problem or not

July saw consumer cost pressures jump, with overall living costs rising 3.7%—nearly double the Federal Reserve’s promised pace. Auto prices climbed ~5% annualized, housing and utilities increased at >3.5%, and recreational goods rose at a double-digit rate. The breadth and magnitude of inflation pressure heighten the risk of tighter policy, likely weighing on risk assets.