Warsh Stays Silent as Fed Officials’ Caution, Soft Inflation Data Cut Odds of an October Rate Hike

Expectations for a Federal Reserve interest-rate increase in October have retreated quickly as softer-than-expected inflation data compounded remarks from senior Fed officials signaling a slower pace of tightening. With Fed Chair Kevin Warsh avoiding signals on the future path of rates, comments from other Fed leaders have effectively served as policy signals for markets.