Bets on Fed rate hold in October strengthen after Warsh comments
US central bank chair says economy has ‘broadly conformed with our expectations’ since rate increase in September
Source: Financial Times
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DW NOTE
The economy has "broadly conformed" to expectations while the Strait of Hormuz sits closed with 800 ships backed up, oil inventories are draining at 1.9 million barrels per day, and the 10-year yield stands at 5.21%. Warsh's dovish tilt assumes the geopolitical risk premium has already peaked — a bet that pays only if nothing else goes wrong.