Back to today’s briefing

Story perspectives

Fed Faces Rate-Hike Pressure as July PMI Hits 55.6

8/4/2026

45 5 Full Breakdown

Summary

Story summary

Federal Reserve (Fed) Chair Kevin Warsh may face pressure to raise rates on September 16 because inflation remains above 2 percent.
The ISM manufacturing PMI jumped to 55.6 in July, the highest level since May 2022.
The prices paid index stayed high at 71.1, above the 70.3 forecast.
The supplier deliveries index rose to 58.9, indicating slower deliveries and supply bottlenecks.

History

Historical Context

After inflation hit 14.8% in March 1980, President Carter appointed Paul Volcker as Fed chairman in July 1979. Volcker’s policy lifted the federal funds rate to a 20% peak in June 1981, pulling inflation below 3% by 1983 but causing a recession. Now Fed official Kevin Warsh faces comparable price pressures, with July 2024 ISM PMI at 55.6 and inflation above the 2% goal.

1 of 2

Story summary

Federal Reserve (Fed) Chair Kevin Warsh may face pressure to raise rates on September 16 because inflation remains above 2 percent.
The ISM manufacturing PMI jumped to 55.6 in July, the highest level since May 2022.
The prices paid index stayed high at 71.1, above the 70.3 forecast.
The supplier deliveries index rose to 58.9, indicating slower deliveries and supply bottlenecks.

1 / 2