Fed's Warsh Stays Dovish — Dollar Weakens
Fed Governor Warsh declined to hint at an October rate rise, weakening the dollar and reinforcing market expectations of a pause — while the SPY model used by one trader is flashing a potential Sell Signal.
What we know
@FT reported the dollar weakening after Fed's Warsh gave no hint of an October hike. Separately, an account on X warned his long-term SPY model — which went on a buy signal in May 2025 — is now seeing underlying components shift toward a potential Sell Signal, urging followers not to be caught on the wrong side of a bear market.
How the story developed
Fed Governor Warsh declined to hint at an October rate rise, weakening the dollar and reinforcing market expectations of a pause — while the SPY model used by one trader is flashing a potential Sell Signal.
Fed Governor Bowman says there is no urgency for further rate action and announced plans for a complete organizational restructuring of the Fed to address the risk-aversion culture exposed by the SVB collapse.
Fed's Goolsbee warns AI-driven price pressures are spreading economy-wide and flags stagflation risk from tariffs; Waller says rising yields reflect strong growth, not inflation.
Fed Governor Waller made multiple hawkish remarks, declaring the US government bond safety premium has disappeared and that higher yields are 'doing some of our work' — a significant structural signal for markets.
Sources
“Dollar weakens as Fed's Warsh declines to hint at October rate rise.”
View post →By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.