Highlights
Round two of the Kevin Warsh appearance on Capitol Hill is the market focus, starting at 10 am ET. Warsh came across as somewhat hawkish on Tuesday even as he resisted answering questions about how he plans to deliver on his pledge to get inflation down to 2 percent. Warsh suggested he was not very impressed by a surprisingly low consumer price index print on Wednesday.
Another batch of better than expected producer price data today after the CPI yesterday bought Warsh some time as markets have completely priced out any expectation of a Fed rate move this month. And energy markets have been surprisingly calm in the face of the unfolding disaster in the Persian Gulf where war has resumed and the flow of oil is interrupted again, with no sign of a way out of the dispute for the US or Iran.