The Odds of a September Rate Hike Have Nearly Doubled, Courtesy of Fed Chair Kevin Warsh -- Here's What He Just Said
Kevin Warsh just leveled with Wall Street about inflation.
Overview
Since early June, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI), benchmark S&P 500 (SNPINDEX: ^GSPC), and innovation-powered Nasdaq Composite (NASDAQINDEX: ^IXIC) have rallied to fresh all-time highs. But these gains aren't reflective of the inflationary headwinds that lie beneath the surface.
In May, the trailing 12-month U.S. inflation rate reached a three-year high of 4.2%, which is more than double the Federal Reserve's long-term target of 2%. In addition to expected inflationary factors, such as businesses possessing modest pricing power over their goods and services amid an expanding economy, several of President Donald Trump's policies have contributed to higher inflation, including tariffs and the Iran war.
Fed Chair Kevin Warsh's Jackson Hole speech riled up Wall Street. Image source: Official Federal Reserve Photo.
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Originally published at www.fool.com.