Warsh's Hawkish Jackson Hole Debut Sends September Hike Odds to ~60%

Fed Chair Kevin Warsh's August 28 Jackson Hole speech argued for higher rates and cited a lack of recent progress on inflation. Traders lifted the odds of a September rate hike to roughly 58–60% from 35–40% the prior day (WSJ, Reuters). The dollar rose 0.6%, bond yields climbed, and equities sold off. August CPI and PPI now decide whether those odds harden.