Warsh's Hawkish Stance Sends Global Markets into Tailspin

The global financial markets are on high alert after Federal Reserve Chairman Kevin Warsh delivered a hawkish speech, emphasizing the central bank's commitment to its 2 per cent inflation target.

Warsh's remarks have sparked concerns that interest rates may rise sooner rather than later, with traders now pricing in over a 50 per cent chance of a Fed rate increase next month.

The US dollar climbed and two-year Treasury yields surged following the speech, while Wall Street experienced a sell-off.

Australia's market also felt the impact, with ASX futures pointing down 0.4 per cent due to risk-off sentiment.

Investors are keeping a close eye on upcoming economic data, including Australia's second-quarter GDP growth, expected at 0.4 per cent, and the US non-farm payrolls report this Friday.