Fed Chair Warsh's Hawkish Remarks at Jackson Hole Boost September Rate Hike Odds

Following Federal Reserve Chair Kevin Warsh's "mildly hawkish message" at the Jackson Hole symposium last Friday, market-implied odds of a Fed rate hike in September have surged from 35% to 60%. Warsh underscored inflation risks, leading to a mixed reaction in markets with sovereign yields rising and the USD regaining some strength.