September Rate Hike Odds Soar to 60% Amid Warsh's Warning on Inflation

The S&P 500 and Dow Jones have surged to new highs since early June, but this rally may be short-lived.

A speech by Fed Chair Kevin Warsh at Jackson Hole, Wyoming, has increased the probability of a September rate hike to 60%.

Warsh emphasized that inflation is running above the Fed's 2% target and that price stability is a top priority for the central bank.

The FOMC's patience with persistently elevated inflation may be wearing thin, according to Warsh, who noted that underlying inflation has been above the target for 65 months.