Warsh Keeps Hawkish Tone, Nasdaq Retreats Amid Elevated Inflation Concerns

Federal Reserve Chair Kevin Warsh kept the door open to further interest rate hikes during his speech at the central bank's annual Jackson Hole Economic Symposium.

The Nasdaq 100 index fell by 0.70% to 29,433 points following Warsh's hawkish comments on inflation and monetary policy.

Warsh emphasized that the Fed must ensure underlying inflation converges towards its target of price stability, and that further rate hikes could be required if inflation remains elevated.

The CME FedWatch tool showed a significant shift in market probabilities following Warsh's speech, with an implied probability of 59.7% for a potential interest rate hike at the Fed's September meeting.