Traders are increasing bets on a US interest rate hike following a speech by Kevin Warsh, chairman of the Federal Reserve.
Warsh's address to central bankers at Jackson Hole, Wyoming, was seen as his clearest signal yet that rates may need to rise to manage high inflation.
He stated that the Fed would 'have work to do' if it was not confident inflation was heading back to its 2 per cent target, adding: 'That's our job.'
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