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International Business Times
International Business Times
Business

Fed Rate Hike Bets Are Fading Fast. Cooler Inflation Could Leave Warsh An Easier Choice.

The Fed's preferred Personal Consumption Expenditures price index reached 4.1% in May before easing to 3.7% in June, still well above the central bank's 2% target. (Credit: AFP)

Federal Reserve Chair Kevin Warsh may be finding something increasingly rare inside the divided U.S. central bank: a reason for almost everyone to keep rates unchanged.

A run of softer inflation data combined with signs of a cooling labor market has weakened the case for raising interest rates at the Fed's September meeting. But inflation is still above the Fed's target and unemployment too low to make the aggressive rate cuts demanded by President Donald Trump an obvious alternative.

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