US-Iran Tensions Fuel Bearish Market as Fed Warns of Ongoing Inflation Concerns

The week started on a bearish note due to rising oil prices caused by renewed tensions between the US and Iran. The tensions led to increased military action, which in turn drove up oil prices.

In his highly anticipated speech at Jackson Hole, Federal Reserve Chair Kevin Warsh emphasized that the US economy remains strong, but inflation remains high. He stated that if inflation doesn't slow meaningfully, the Fed will have 'more work to do.'

Warsh's comments sparked debate among investors and economists about the potential for a Federal Reserve rate hike in September. However, Warsh did not explicitly commit to supporting a hike or respond to the Treasury's efforts to tame the yield curve.