{
  "id": 6785402,
  "title": "Wall Street thought the Powell hike was over. Now Kevin Warsh has his ‘back against the wall’",
  "url": "https://urgent.news/2026/09/11/wall-street-thought-the-powell-hike-was-over-now-kevin-warsh-has-his",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-11T17:14:50.000Z",
  "source": {
    "name": "Fortune",
    "slug": "fortune",
    "url": "https://fortune.com/2026/09/11/inflation-fed-reserve-kevin-warsh/"
  },
  "original_language": "en",
  "account": "Wall Street's confidence in the Federal Reserve's decision to end its hiking cycle was shaken, as unexpected factors emerged. Oil prices crossed the $100 threshold, bond yields surged, and the recent producer-price report indicated a hotter-than-expected inflation rate. Chair Kevin Warsh's ambiguous stance on the Fed's next move made the upcoming inflation data particularly crucial. Christopher Waller, a prominent Fed Governor, hinted that even minimal inflation acceleration could prompt a hike. The CPI rose 0.3% in August, surpassing expectations of 0.2%, with headline CPI increasing 0.4%, driven by a 3.9% jump in gasoline prices. The probability of a quarter-point Fed hike next week rose to around 85%, from 70% prior to the report. The 10-year Treasury yield neared the 5% mark, nearing a critical threshold. Stocks, however, remained resilient, with all three indices climbing higher. Main Street, meanwhile, faced another confirmation of the year's financial pressures, with wages stagnating for the fifth consecutive month and consumer sentiment hitting another near-record low. The CPI's influence was so significant that even marginal price changes could have a substantial impact. Wireless telephone services experienced the largest surge at 5.9%, contributing 0.077 percentage point to the overall increase. Core inflation stood at approximately 0.2% rather than the reported 0.3%, after excluding wireless services. While smartphone prices declined by 1.7% in August, the broader telephone-hardware category fell by 2.4%. Despite these developments, energy prices remain a major concern, as the recent oil price surge could affect various industries, from airfare to consumer goods. The Fed now finds itself with its \"back against the wall,\" as the core CPI's 0.3% monthly increase puts the 2006-2007 highs around 5.25% to 5.35% within reach. Chris Zaccarelli, chief investment officer at Northlight Asset Management, expressed concern over the intertwined factors, including a near-record high 10-year yield and a Fed seemingly ready to initiate hikes. He noted that bull markets don't die of old age but are killed by the Fed.",
  "summary": "Hotter inflation, above $100 oil and a 10-year Treasury yield flirting with 5% have put another round of rate hikes back on the table.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 4,
    "also_reported_by": [
      {
        "outlet": "Handelsblatt",
        "title": "Wall Street: Inflation calls for interest rate hike, oil price declining",
        "url": "https://urgent.news/2026/09/11/wall-street-inflation-spricht-fur-zinsanhebung-olpreis-rucklaufig",
        "published": "2026-09-11T14:43:29.000Z"
      },
      {
        "outlet": "The Hill",
        "title": "Wall Street Journal editorial board denounces 'preposterous' Trump dividend plan",
        "url": "https://urgent.news/2026/09/11/wall-street-journal-editorial-board-denounces-preposterous-trump",
        "published": "2026-09-11T17:42:59.000Z"
      },
      {
        "outlet": "Winnipeg Free Press",
        "title": "Wall Street week ahead: Federal Reserve decision on interest rates, retail sales update",
        "url": "https://urgent.news/2026/09/12/wall-street-week-ahead-federal-reserve-decision-on-interest-rates",
        "published": "2026-09-12T08:00:49.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}