British Pound tumbles as Warsh revives Fed hike bets
The Pound Sterling tumbles versus the Greenback on Friday as the Federal Reserve Chair Kevin Warsh puts inflation as the priority on the Fed, increasing the likelihood of an interest rate hike later in the year. The GB/USD trades at 1.3538, down 0.40%.
The British Pound weakened against the US Dollar on Friday as Federal Reserve Chair Kevin Warsh emphasized inflation as a priority, raising the possibility of an interest rate increase later in the year. The GB/USD rate fell to 1.3538, down 0.40%. Warsh, who skipped submitting his June dot in the Summary of Economic Projections, stated that summer's inflation data was better than expected, but recognized that core inflation had not improved.
He emphasized that the Fed must be confident inflation is returning to target, or they "have work to do." Warsh noted that consumer spending and the labor market remain healthy, but he called the price stability numbers "more concerning" and reiterated that the Fed's 2% PCE target is firm and fixed. Following the announcement, the US Dollar Index climbed over 0.38% to 99.49, while US Treasury yields, particularly the 10-year benchmark rate, rose nearly 1.5 basis points to 4.686%.
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