Fed's Warsh Unlikely to Challenge Consensus -- Market Talk

0526 GMT - For his second monetary policy committee meeting, Federal Reserve Chairman Kevin Warsh won't challenge the consensus, Natixis Investment Managers' Mabrouk Chetouane says in a note. Warsh "will not give in to the temptation to raise the Fed funds rate by 25 basis points, even though, at this stage, bringing inflation back to target by the end of the year is virtually out of reach," the head of global market strategy says. "Furthermore, the Fed chair will not want to risk jeopardizing the slow but steady improvement in the labor market--which has been evident for several weeks--by tightening monetary conditions." Analysts widely expect the Fed to stay on hold Wednesday but money markets price in a 38% probability of a hike, according to LSEG. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 28, 2026 01:26 ET (05:26 GMT)