Fed's Warsh Signals Possible Rate Hike: Markets React

On August 28, 2026, Fed Chairman Kevin Warsh's hawkish remarks spurred traders to price in a possible rate hike, Reuters reported. Stocks fell; the dollar and bond yields climbed. Yields — what lenders earn on government debt — rose, signaling tighter borrowing conditions ahead. A basis point is 1/100th of a percentage point.