The Federal Reserve, following an FOMC decision, raised the Funds Target Range to 3.75%\u20134.00% in a move that had been expected. In the subsequent press conference, Chair Kevin Warsh said inflation trends were \u201cnot passing the test\u201d and added that he had seen little to alter that view. He also said the summer data did not persuade him that the inflation situation had improved, and that the committee needed confidence that underlying inflation was moving to 2% on a timely basis.<\/p>\n\n
Warsh said he was \u201chard-pressed\u201d to describe financial conditions as restrictive, adding that this assessment was widely shared within the FOMC. He described the latest decision as removing a dose of accommodation. <\/p>\n\n
After the remarks, the US Dollar Index (DXY) moved above 100.00, and market pricing shifted towards two additional Fed rate rises by year-end.<\/p>\n\n\n\n