Markets will watch whether Wosh repairs communication after July’s vague,
evasive answers; Natixis expects him to frame any rate hike as necessary to
ensure inflation returns to target promptly. If the Fed raises rates as expected
this week, attention will be on whether Wosh views energy- and tariff-driven
inflation as one-off supply shocks or as more
persistent/second-round/expectations-driven pressure—emphasizing the former
would reduce perceived need for further tightening, the latter would elevate
tightening risk. Reuters flags political sensitivity: Trump has pushed for cuts
while markets expect hikes; watch Wosh’s response to Trump, whether he reasserts
FOMC independence, avoids naming Trump, or stresses “data dependence.” Wosh has
tended to avoid forward-rate guidance; after July’s confusion and a hawkish turn
at Jackson Hole, markets will watch for any change in messaging or a renewed
insistence he has “no tolerance” for inflation. With the 10-year Treasury yield
above 5% on Sept. 14, traders will also look for any comments addressing further
bond sell-offs and concerns about fiscal- or inflation-related risk premia.
