BNP Paribas Urges Fed Chair Kevin Warsh to Hike Rates

Camille de Courcel, head of developed markets rates strategy at BNP Paribas, argues that Federal Reserve Chair Kevin Warsh must signal or implement interest rate hikes to establish market credibility. The analysis comes ahead of the release of U.S. inflation data and a pending Federal Reserve policy decision.

De Courcel asserts that the July Federal Open Market Committee meeting failed to provide the market with sufficient credibility. She warns that if the Federal Reserve fails to deliver on rate hikes, it could trigger a "vicious circle" involving market expectations and Treasury yields.