Nomura: Fed Chair Warsh Signals Hawkish Stance, August Data Key to Policy Outlook

Nomura Securities reported that Federal Reserve Chair Warsh emphasized inflation targets in his Jackson Hole debut, suggesting potential policy adjustments if inflation remains persistent. While Warsh did not explicitly signal an immediate rate hike, market expectations for a September hike rose above 50%. Nomura expects August core PCE to rise by approximately 0.2%, supporting a hold on rates, though the market's sensitivity to upcoming economic data has increased significantly. Warsh expressed optimism regarding consumer health and capital expenditure, wh