Warsh's Jackson Hole Speech Jumps Rate-Hike Odds to 58% for September, 89% for December

Fed Chair Kevin Warsh's August 28 Jackson Hole keynote lifted implied September rate-hike odds from 36% to 58% and December odds to 89%, per Reuters. Stocks closed lower; gold fell about 3%. The 22-point September jump in one session suggests markets were positioned more dovish than the Fed's stance warranted. Higher rates would sustain cash yields but raise floating-rate borrowing costs.