Dollar Soars as Warsh Flags High Inflation Priority

The US dollar surged on Friday after Federal Reserve chief Kevin Warsh highlighted fighting high inflation as a top priority in his speech at the Jackson Hole symposium.

Warsh said, 'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.'

The Fed's target for inflation is 2%, but it currently stands at nearly double this figure at 3.7%.

Investors are concerned about the impact of high energy prices from the ongoing Iran war, particularly as winter approaches.

Short-term US Treasury bonds saw yields spike in anticipation of a higher Fed rate after Warsh's speech.