Warsh Comments Spark Revised Rate Hike Forecast by Barclays

Barclays has revised its forecast for US Federal Reserve interest rate hikes in response to recent comments from Fed Chair Kevin Warsh. The brokerage now expects two more rate hikes this year, one in September and another in December.

Warsh's remarks at the Jackson Hole symposium on Friday were described as 'notably hawkish' by Barclays. He emphasized that policymakers would need to take action if they lacked confidence that inflation was returning to the 2% target.

The Fed Chair noted that inflation is currently too high, financial conditions are not restrictive, and the labor market is consistent with full employment, highlighting price stability as a top priority for the central bank.