Fed Chairman Kevin Warsh says the inflation outlook is improving.

Expectations of inflation over the first four months, first four weeks of this period, they've come down.

Inflation risks have come down.

But won't say if the central bank should lift rates.

Plus, President Trump takes his maiden flight on the new Air Force One plane that was gifted by Qatar.

And the signature trade agreement between the U.S., Canada, and Mexico is in doubt.

It's Wednesday, July 1st.

I'm Alex O'Sullough for the Wall Street Journal.

This is the PM edition of What's News, the top headlines and business

stories that move the world today.

Federal Reserve Chairman Kevin Warsh said today that the risks of higher inflation have receded

in his first weeks on the job. He sees that as evidence that markets have already grasped his hard line on prices.

Wirt was speaking at a conference of central bankers in Portugal.

He's long argued that the Fed should say less about its outlook for the economy.

And today, he sidestepped questions about future rate decisions

and brushed aside complaints that investors need a clearer sense of how the Fed would

adjust as the outlook changes. There has been a tendency, and I take plenty of blame from this the

08 crisis, where we were trying to suppress volatility, where we thought we needed to spoon

feed markets to get out of that. That was the right policy for a crisis. It is not the right

policy for the time that we have now.

Markets are anticipating a rate increase later this year, though interest rate futures are still

expecting a hold at the next meeting later this month.

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