Forex
Dollar Surges as Hawkish Warsh Speech Pushes Rate Hike Probability to 50%
The Fed Chair Kevin Warsh's hawkish speech at the Jackson Hole summit has sent shockwaves through financial markets. The dollar surged across the board, with gold and silver dropping in response.
The probability of a September rate hike from the Fed jumped from 30% to around 50%, as investors repriced their expectations following Warsh's comments.
The upcoming jobs and CPI reports will be closely watched, with any signs of weakness potentially denting hopes for a rate hike.