Warsh Hints at Further Rate Hikes as Nasdaq Retreats

Federal Reserve Chair Kevin Warsh hinted at further interest rate hikes in a speech at the central bank's annual Jackson Hole Economic Symposium. The Nasdaq 100 index fell by 0.70% to 29,433 points following his remarks.

The Fed Chair emphasized that price stability remains the central bank's primary mandate and that underlying inflation must converge towards its target. He noted that the labour market is stable and the economy resilient, yet inflation has persisted above target for an extended period.

Warsh also stressed the need for caution in communications with market participants, highlighting the powerful influence of monetary policy on investment decisions.