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Warsh May Raise Rates as Manufacturing PMI Hits 55.6

8/4/2026

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Story summary
  • Fed Chair Kevin Warsh may raise the benchmark rate at the September 15-16 meeting as inflation stays above the 2% target.
  • The ISM manufacturing PMI rose to 55.6 in July, its strongest since May 2022, while the employment gauge reached its highest since August 2022, the first expansion in 33 months.
  • Analysts Jeffrey Roach and Troy Ludtka said strong payroll growth in manufacturing and construction supports a hawkish stance.