# Communication Strategy Related Articles

Report: Warsh Prepared to Raise Interest Rates in September if Inflation Data Remains Strong in Coming Weeks

Report: Fed Chair Walsh Prepared to Hike Rates in September If Upcoming Inflation Data Stays Strong According to a Financial Times report, Federal Reserve Chair Walsh is prepared to raise interest rates at the September policy meeting if inflation data in the coming weeks remains hot and market expectations for a hike increase. Following this news, short-term US Treasury yields rose. Walsh has adhered to a pared-back communication strategy despite recent market volatility and criticism that his limited guidance has weakened the Fed's inflation-fighting credibility. Sources close to his thinking acknowledge some communication missteps since he took office but insist these won't derail his overall reform agenda. His most significant policy shift has been drastically reducing forward guidance, a practice he has long criticized for boxing in policymakers. Futures markets now price in roughly a 55% chance of a 25-basis-point rate increase in September. Sources indicate that while Walsh has raised the possibility of using balance sheet reduction to tighten policy, interest rates remain the primary tool for now. The Fed's preferred inflation gauge was at 3.7% in June. Walsh is expected to deliver his first major speech at the upcoming Jackson Hole symposium, seen as a key opportunity to clarify his policy framework and address perceived shortcomings in his messaging.

marsbit08/06 13:16