1323 ET - An expected Fed hike is more likely to solidify the central bank's independence from politics than to significantly curb inflation, Diamond Hill's Henry Song says. "I'm still trying to work out whether Chairman Warsh wants to be going head-to-head with the president this early in his tenure." Song will be watching for indications of whether a hike would be a one-off or the beginning of a cycle. He says a hold could be justified by macro indicators, but it could be interpreted as Warsh bending under political pressure, in which case long-term yields would rise. Futures markets price 93% odds of a hike, according to CME.
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