0601 GMT - By deciding against forward guidance, Federal Reserve Chairman Kevin Warsh has maneuvered both himself and the Fed into a corner where a rate hike at Wednesday's meeting appears to be the only remaining option, says Metzler analyst Leon Ferdinand Bost in a note. "While we continue to believe that, from a macroeconomic perspective, it would be justifiable for the Fed to wait and see how the inflation outlook evolves, the market is now pricing in a hike with over 90% probability," he says. Consequently, the Fed and the Chairman would risk a massive loss of credibility if the hike failed to materialize, Bost says.
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