Warsh Faces Scrutiny Over Rate-Hike Rationale and Fed Independence

Markets will watch whether Kevin Warsh clearly explains the policy decision and avoids a repeat of the July communication mishap. According to ChainCatcher, Natixis analysts expect Warsh to describe a rate hike as a necessary step to curb inflation. If the Federal Reserve raises rates as expected, investors will focus on Warsh's view of inflation pressure. Reuters said Warsh must respond in a sensitive political environment to U.S. President Donald Trump's calls for rate cuts while stressing the Federal Reserve's independence.