Warsh Says Inflation Isn’t Slowing, Vows to Hit to 2% Target

Fed Chair Kevin Warsh warned inflation is not meaningfully slowing, adding that policymakers must be confident it is easing or the Fed has “work to do.” The message implies a continued restrictive stance, raising expectations for higher-for-longer rates. This is likely to modestly pressure rate-sensitive assets as markets reprice the inflation/rate outlook.