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

Fed Chair Kevin Warsh's August 28 Jackson Hole keynote raised September rate-hike odds from 36% to 58% and December's to 89%, per Reuters. Stocks fell; gold dropped about 3%. The 22-point September jump signals markets were too dovish versus the Fed. Higher rates sustain cash yields but raise floating-rate borrowing costs.