Natixis Investment Management global markets strategist Mabrouk Chetouane said in a note that Fed chair Kevin Warsh is unlikely to challenge the prevailing consensus at his second MPC meeting and is unlikely to yield to pressure to hike by 25bps. Chetouane said returning inflation to target by year-end is now nearly impossible at this stage, and Warsh would avoid tightening policy if it risks reversing weeks of slow but steady labour-market improvement. Analysts broadly expect the Fed to hold on

Natixis Investment Management global markets strategist Mabrouk Chetouane said in a note that Fed chair Kevin Warsh is unlikely to challenge the prevailing consensus at his second MPC meeting and is unlikely to yield to pressure to hike by 25bps. Chetouane said returning inflation to target by year-end is now nearly impossible at this stage, and Warsh would avoid tightening policy if it risks reversing weeks of slow but steady labour-market improvement. Analysts broadly expect the Fed to hold on Wednesday; money markets price a 38% probability of a rate hike.