Fed chair Kevin Warsh opened his press conference saying he and other policymakers are dissatisfied with the current pace of inflation. He said price stability is their primary focus and that "inflation is too high and has persisted too long," adding this summer's data has not shown a meaningful improvement in trend. Warsh flagged that recent CPI and PPI releases include too many categories with six- and 12-month gains above 3 pct. He reiterated the FOMC's remit to achieve full employment and pr

FOMC statement: Federal Reserve to raise interest on reserve balances (IOR) to 3.90% and the discount rate to 4.00%.

Catherine Brooks, head of institutional research, said the latest CPI supports a Bank of England hawkish pause, though a material inflation shock could emerge in September. No sign yet of inflation broadening across the economy, but input-price pressure is visible: materials costs +6.1% YoY and factory-gate prices +3.7% YoY, risks that could be passed to already-stretched consumers or compress corporate margins. Core inflation stability is positive, but the BoE has said energy prices now have greater influence on inflation expectations and an elevated energy price cap leaves upside inflation risk. Markets have cut near-term hike odds but still price roughly four hikes through end of next year. Unless the Iran war ends or Middle East supply constraints ease, Brooks warned the UK faces prolonged upward pressure on rates.