US Stocks Fall as Warsh Lifts September Rate-Hike Odds to 57%
Updated
Updated · CGTN · Aug 28
US Stocks Fall as Warsh Lifts September Rate-Hike Odds to 57%
3 articles · Updated · CGTN · Aug 28
Summary
September rate-hike odds climbed to 57% after Fed Chair Kevin Warsh used his Jackson Hole keynote to stress that inflation remains the Fed's “predominant concern.”
July PCE inflation at 3.7% and core PCE at 3.3% reinforced that hawkish read, even as Warsh described the US economy as resilient and said the Fed would watch market internals and earnings.
US stocks closed lower Friday, with the S&P 500 down 0.25%, the Nasdaq off 0.52% and the Dow slipping 0.02%; technology and utilities led the declines.
Bond markets reacted more sharply, pushing short-term Treasury yields higher, while the University of Michigan's consumer sentiment index fell to 51.7 in August.
The market move extends a repricing that began earlier in Jackson Hole, when traders sharply raised expectations for a possible September Fed increase.