Fed's Warsh: This summer's inflation data is better than expected, but do not tell me underlying trends have meaningfully improved.......Have work to do if inflation is not moving to 2% with speed.SentimentTraders now see about a 50-50 chance of a Fed rate hike in September, based on pricing in rates futures.US short-term interest-rate futures fall as traders add to bets on Fed rate hike after Fed Chair Warsh speechMarket ReactionInitial whipsaw from markets, but not long after DXY strengthened, stock indexes and gold weakened. There was more of a reaction on FX and gold than stocks. Bond yields also rose.