Hot CPI puts Warsh's Fed credibility on the line before rate decision

Hotterthanexpected August inflation data has increased pressure on Federal Reserve Chairman Kevin Warsh ahead of the Fed's Sept. 1516 meeting. The latest CPI report showed core prices rose 0.3% on the month, while headline inflation increased 0.4% and was 3.4% higher than a year earlier. Warsh has recently argued that inflation is still too high and that the Fed may need to raise interest rates if price growth does not ease. That view contrasts with some other Fed officials, who have been more open to waiting for additional data before deciding on a move. The article says the decision could shape how investors view Warsh's leadership and independence. If the Fed holds rates steady after his repeated warnings about inflation, markets may question how much influence he has over policy and whether other figures are setting the tone.