Warsh Faces Intensifying Pressure to Raise Rates After Hot CPI | Bloomberg Businessweek

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Well, monetary markets see a Fed hike. Well, the money markets I should say, see a Fed hike next week as an almost done deal amid elevated inflation data. Treasury yields fell from multi-year highs. As for inflation, White House National Economic Council Director Kevin Hasset doesn't seem all that worried. He joined Bloomberg this morning.

If you look at the last three months, even with a slightly disappointing number, uh, core CPI is too. And so, uh, in the model that I would be using, I would say that you just about hit the target and inflation is decelerating. Now, what the Fed decides to do, maybe they decide that they're going to do something that put risks on this side or that side.

It's up to them. Uh, but frankly, I think that inflation is clearly decelerating even with this slight uptick uh, this month. If you look at the three-month average, uh, then you're basically hitting the core target.

That, of course, was White House National Economic Council Director Kevin Hasset this morning on Bloomberg. Let's get into it. Let's talk uh that CPI print.

Let's talk inflation overall. Let's talk rates. Let's talk the Fed.

With us to do that is Ira Jersey, chief US interest rate strategist at Bloomberg Intelligence. He's out there in our Princeton news bureau. Also with us right here in studio, Bloomberg News macro strategist uh Frank Monra and of course you know he previously worked at uh commodity trading houses uh several of them and so has an unique trading perspective.