Warsh Speech Sparks Rate Hike Bets, But Stocks Remain Unfazed

Stock traders seem to be accepting of higher interest rates after Federal Reserve chair Kevin Warsh's speech at Jackson Hole, which saw odds of a September rate hike jump to nearly 60 percent.

The Cboe Volatility Index (VIX), which measures the price of 30-day options on the S&P 500 Index, fell to its lowest reading all year at 14.1 in the aftermath of Warsh's speech.

This suggests that investors are preparing for higher interest rates, with some arguing that a vigilant Fed is seen as positive for the economy and stock prices.