Warsh's Hawkish Remarks Boost US Dollar Index Ahead of September Rate Hike Decision

The US Dollar Index rallied on Friday, gaining 0.36% to trade around 99.50 after Federal Reserve Chair Kevin Warsh's hawkish remarks at the Jackson Hole Symposium.

Warsh stressed that price stability should remain the central bank's predominant focus and warned policymakers need to be confident that underlying inflation is moving toward the Fed's 2% Personal Consumption Expenditures (PCE) inflation target.

The combination of resilient economic activity and persistent inflation concerns triggered a significant repricing of monetary policy expectations, with markets now assigning around a 56% chance to an interest-rate hike at the Fed's September meeting.