GBP Tumbles on Warsh Comments, Rate Hike Fears
The Pound Sterling (GBP) took a hit against the US Dollar (USD) on Friday as Federal Reserve Chair Kevin Warsh emphasized inflation as the Fed's top priority, increasing the likelihood of an interest rate hike next month.
This development sent the GBP/USD pair tumbling to 1.3538, down 0.40% from previous levels.
Despite a brief rebound on Friday morning, traders remained cautious as Warsh's comments revived expectations for a Fed rate hike, pushing back against earlier bets that interest rates would remain low.