Fed's Hawkish Chorus Grows Louder

Bond traders and Federal Reserve Chairman Kevin Warsh are in agreement on a crucial point: The central bank's fight against inflation still seems far from over.  The Labor Department report that US consumer prices in June saw the first monthly drop since 2020 was met with relief in financial markets, where investors last week rapidly unwound bets that the central bank might start raising interest rates later this month.  Rob Sockin, Chief Economist at PGIM, discusses his base case of three rate hikes in 2026.