Rate Statement & SEP: Fed Projections show 12 of 18 officials see one more 25-basis-point rate hike this year; four see two hikes; two see no more hikes. Vote in favor of policy was unanimous. Inflation remains elevated, drops earlier description of that owing in part to supply shocks. 16 officials project at least one more rate hike in 2026. Fed Officials' median view of the Fed funds rate at end-2029 3.6%. Sentiment: Traders maintain bets on another Fed rate hike this year. Warsh Presser: Key markers have improved in the recent months. I am hard-pressed to call financial conditions restrictive. The view that conditions are not restrictive was widely shared by the FOMC. FOMC removed a dose of accomodation. Summer data does not tell me that the inflation situation has improved. Sentiment During Warsh: Traders add to bets on two more Fed rate hikes by the year-end. Traders price in about a 50% chance of a Fed rate hike in October.