J.P. Morgan drops Fed rate bombshell over Warsh, inflation

The Federal Reserve’s policy committee voted 9-3 on July 29 to maintain short-term benchmark interest rates steady, with the Personal Consumption Expenditure price index showing a month-over-month decline of 0.1% in June and a year-over-year decrease from 4.1% to 3.7%. However, Fed Chair Kevin Warsh’s remarks during his second Fed Day generated significant market concern by leaving questions unanswered regarding whether the PCE index would continue as the central bank’s prefer