Warsh's Hawkish Remarks Send Interest Rate Hike Odds Soaring to 57%

Federal Reserve Chairman Kevin Warsh's remarks at the Jackson Hole Economic Policy Symposium have sent shockwaves through the market, causing stocks to erase daily gains and increasing the probability of an interest rate hike.

Warsh expressed concern about high inflation, stating that until they are confident that it is moving towards their 2% target rate 'clearly and at a sufficient speed,' they 'have work to do.'

The latest reading of the central bank's preferred gauge of inflation came in at 3.7% over 12 months, which Warsh called 'a reality putting [him] at odds with the man who appointed him' - President Donald Trump.

Trump had previously brushed off concerns about inflation and insisted that prices under his administration have fallen.