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Disinflation data dims Fed rate-hike odds, but Warsh signals no decision made

7/17/2026

Two consecutive disinflationary readings have reduced market-priced odds of a Federal Reserve rate hike at the July 29 policy meeting to remote.

Chairman Kevin Warsh, testifying before the Senate Banking Committee for a second straight day Wednesday, welcomed the data while making clear it settles nothing about the policy path for the rest of the year.

What the June numbers delivered The Labor Department's June Producer Price Index fell 0.3% overall, according to figures released Wednesday morning.

The core measure, stripping out food, energy and trade services, rose just 0.1%.

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