Warsh Revives Rate Hike Bets as Pound Tumbles Against Dollar

The British Pound fell against the US Dollar on Friday after Federal Reserve Chair Kevin Warsh emphasized the need for inflation control. This led to increased bets of a rate hike later this year, with odds now standing at 43%.

Warsh acknowledged that consumer spending and labor market stability are positive indicators, but expressed concern over price stability, reaffirming the Fed's 2% PCE target as 'firm and fixed.'

The US Dollar Index (DXY) rose by 0.38%, while US Treasury yields increased nearly 1.5 basis points to 4.686%. The Nonfarm Payrolls Annual Revision came in below forecasts, with a -79K reading.