Warsh's Hawkish Turn Sends Rate Hike Odds Soaring Above 60%

Markets are now pricing in a high chance of a September interest rate hike after Federal Reserve Chair Kevin Warsh delivered hawkish remarks at the Jackson Hole symposium.

The odds of a 25-basis-point hike rose from 57% to 63%, according to CME FedWatch data, as traders rapidly repriced the likelihood of further Fed rate increases.

Deutsche Bank maintained its forecast for two hikes in September and December, with a total increase of 50 basis points.

The prospect of tighter monetary policy is weighing on gold prices, which had surged sharply in recent weeks but tumbled as much as 1.2% intraday, reaching a low of $4,400 per ounce.