Warsh's Hawkish Speech Sends Shocks Through Markets

Federal Reserve Chair Kevin Warsh's recent speech at the Jackson Hole symposium marked a hawkish shift in U.S. monetary policy, surprising markets and consumers alike.

The probability of a September rate hike jumped from 34% to 57%, according to futures data, after Warsh signaled that inflation remains too high and the Fed might need to raise rates soon.

This hawkish pivot had mixed effects on asset prices, with technology stocks rising while traditional safe havens like gold and silver declined. Gold's price slipped below $4,600 per ounce amid persistent inflation concerns.

Consumer sentiment is also deteriorating, with the University of Michigan's sentiment index falling 6.3% month-on-month to 51.7 in August 2026, and the Conference Board's consumer confidence index dropping to a seven-month low of 89.4.