Federal Reserve Chairman Kevin Warsh said Friday he won't prejudge what the U.S. central bank will do about interest rates at its upcoming meetings in October and December.

TOKYO — An unwelcome blast of US inflation is blowing across Asia’s markets. September’s hotter-than-expected price data revived concerns that the Federal Reserve will keep rates higher for longer, threatening fresh pressure on currencies, capital flows and economic growth across the region.

Last month’s 3.7% year-on-year increase in consumer prices didn’t just exceed forecasts. It ensured the Fed is on an even bigger collision course with both the bond market and US President Donald Trump’s White House. It’s arguably the last thing both Trump and US Federal Reserve Chairman Kevin Warsh wanted to see less than three weeks ahead of the mid-term elections.

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Gas, clothes, and air fares got more expensive, evidence that rising prices remain an economic challenge just a few weeks before the midterm elections that have focused heavily on issues related to affordability.

The U.S. Treasury bond market is scorching hot and this should worry you because of the consequences for your bottom line. Your mortgage rate, car loan, credit card interest or business loan rates could rise driven by the state of government debt securities.

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© ANGELA WEISS (AFP)

TOKYO — Anyone betting that inflation risks are fading should look at the US Treasury market. The sharp selloff in Treasury Inflation-Protected Securities (TIPS) suggests the world’s biggest bond market is growing less convinced that price pressures are contained. Investors are rethinking the inflation outlook, with implications for Federal Reserve policy, real rates and stock […]

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