Jefferies: Distinguish Warsh's Inflation Stance from Rate Hikes

U.S. inflation data for June came in below market expectations, weakening expectations for further rate hikes by the Federal Reserve, and the U.S. dollar remained weak on Wednesday. According to Jin10, Fed Chair Kevin Warsh reiterated his commitment to price stability during his congressional testimony on Tuesday. Jefferies economist Mohit Kumar said in a report that Warsh's efforts to strengthen his anti-inflation credibility should be distinguished from the need for further rate hikes. Kumar said that unless oil prices continue to rise and further pass through to consumer prices, inflation is expected to continue easing in the coming quarters.