September Rate Hike Odds Jump to 60% Amid Hawkish Fed Sentiment

Markets have shifted their focus to September's Federal Reserve interest rate hike, with a 60% chance of a 0.25% increase, according to CME Group's FedWatch Tool.

The shift in expectations comes after the Jackson Hole economic symposium, where new Fed chair Kevin Warsh remained tight-lipped on policy cues, stating that forward guidance has 'overstayed its welcome.'

Warsh also expressed concerns about inflation, describing current data as too high, despite July's lower-than-expected results for the Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE) index.

This week will see the release of multiple US employment indexes, including August nonfarm payrolls data, which could temper rate hike expectations.