Warsh: Inflation Fears Ease as U.S. Economy Stays Resilient
Fed Chair Kevin Warsh said inflation risks have eased while reaffirming the Fed's data-dependent stance. U.S. manufacturing expanded for a sixth month, input costs saw the biggest monthly drop since July 2022, and private-sector hiring remained solid in June.
Fed Chair Kevin Warsh stated that inflation risks have eased, underscoring the central bank's commitment to price stability. He reiterated that the Fed will not provide forward guidance and will remain data-dependent on future rate decisions.
U.S. manufacturing expanded for a sixth consecutive month, while input cost pressures recorded their largest monthly decline since July 2022. Private-sector hiring remained solid in June, with investors now awaiting Thursday's nonfarm payrolls report.
In markets, most S&P 500 stocks advanced, but weakness in chipmakers dragged the index lower. Oil prices fell after positive U.S.-Iran talks reduced geopolitical tensions, further easing inflation concerns. Software stocks rose after Guggenheim said AI risks to the sector appear overblown. Notable corporate stories included Apple, Meta, Google, and Alcoa.
Source: First Squawk