FED CHAIR WARSH SAYS THE PRICE STABILITY TARGET IS 2%, MEASURED BY PCE, AND THAT THERE IS NO SOFT INFLATION TARGET

Fed Chair Warsh stated that the Federal Reserve's price stability target is 2%, measured by the PCE price index, and that the central bank has no soft inflation target that would tolerate persistent overshoots. The remark clarifies the reaction function: the Fed will not treat inflation running above 2% as acceptable for an extended period, which reinforces the inflation-repricing channel by pushing out expectations for rate cuts. Rate-sensitive assets such as Treasury futures, the front end of the curve, and rate-sensitive equities face the most direct exposure, while the U.S. dollar may firm on the higher-for-longer rate differential. Traders should watch the next PCE price index release and the associated core PCE reading, since any upside surprise would validate the hawkish framing and test the market's current rate-cut pricing.

HIGH-impact news is typically a market-moving event with multi-pip or multi-percent intraday reactions. Examples include central bank rate decisions, major CPI/NFP releases, geopolitical shocks, mega-cap earnings beats/misses, and regulatory announcements. Traders typically position-reduce or hedge ahead of scheduled HIGH-impact events, and follow the wire in real time to react to unscheduled ones (war headlines, central-bank emergency statements, surprise corporate actions). The Trading News Terminal squawk box reads every HIGH-impact headline aloud the moment it hits the wire — so active traders don't have to stare at the feed.

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