Bill Baruch says the key for the Fed is anchoring inflation expectations, and he thinks Chair Warsh has talked tough enough to get there. He acknowledged inflation has run hotter than expected, but argues much of it comes down to energy, and monetary policy is not a tool to combat energy inflation. That is why he sees a balance. A restrictive housing market means the Fed cannot push too hard without deteriorating the economy and tightening conditions further. His read is no hike today, a possible token hike in December, and next year’s hikes getting priced out. Watch the full discussion here.