Fed Chair Warsh’s latest remarks have shifted expectations toward a possible rate hike at the September meeting, according to reporting highlighted by Nick Timiraos and comments from former Fed Vice Chair Kohn. Kohn said the speech reversed the Fed’s earlier stance, changing the default from holding rates steady unless data justified action to raising rates unless incoming data show no need to move. Two elements of Friday’s speech point to that shift: Warsh appears unlikely to describe current financial conditions as restrictive, and recent softer summer inflation readings did not persuade him that the underlying trend is improving. The final decision is expected to hinge on incoming data before the September meeting, particularly the August CPI report due on September 11. Kohn said firm data could undermine the case that inflation is returning to the Fed’s 2% target, while softer data could argue against a hike.