One Fed Official's Words Moved Rate Expectations More Than the Economic Data

Traders now see a 57.5% chance the Fed raises rates in September, up from 40.1% after August 26 data and 30.6% ten days earlier, per Reuters. The 17-point jump came after Kevin Warsh spoke — and it was bigger than what the actual economic numbers caused. So one person's words moved rate expectations more than the data did.