Analyst Andrew Sacher said some had expected Fed chair Kevin Warsh to favor an inflation gauge that would show him in a better light; instead Warsh decomposed PCE inflation and found 49% of components had annualized price gains above 3%, calling that level "quite high". He struck a hawkish tone on the labor market, emphasizing low unemployment and initial jobless claims, while only briefly touching on nonfarm payrolls.

2026-08-28

Analyst Andrew Sacher said some had expected Fed chair Kevin Warsh to favor an inflation gauge that would show him in a better light; instead Warsh decomposed PCE inflation and found 49% of components had annualized price gains above 3%, calling that level "quite high". He struck a hawkish tone on the labor market, emphasizing low unemployment and initial jobless claims, while only briefly touching on nonfarm payrolls.