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.
