Warsh Signals Possible Rate Hikes Amid Persistent Inflation Fears

US Federal Reserve Chair Kevin Warsh hinted at further interest rate hikes during his speech at the Jackson Hole Economic Symposium, citing persistently elevated inflation as a major concern.

The Nasdaq 100 index fell by 0.70% to 29,433 points in response to the hawkish remarks, with market participants pricing in a potential rate hike for the Fed's September meeting at 59.7%, up from 40.0% prior to Warsh's speech.

The University of Michigan published its final survey results for August, showing a slight decline in one-year-ahead inflation expectations from 4.2% to 4.0%, while five-year inflation expectations remained steady at 3.3%. The report also highlighted growing consumer uncertainty surrounding the ongoing US, Iran conflict in the Middle East.