Markets Hold Breath Ahead of Warsh Speech on Inflation Concerns

Global markets are on edge as investors await Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Economic Policy Symposium, where he will address inflation concerns. The US Personal Consumption Expenditures (PCE) price index rose 0.2% last month, exceeding estimates and fueling fears that prices may continue to rise.

The perception of persistent inflation has investors expecting a rate hike from the Fed, limiting the positive impact of chipmaker Nvidia's recent strong earnings. The US two-year Treasury yield climbed three basis points on Thursday to 4.23%, with investors highly sensitive to policy expectations.