Fed Governor Warsh Turns Hawkish, Market Prices in 60% Chance of September Rate Hike

As of August 31, Federal Reserve Governor Kevin Warsh's speech at the Jackson Hole Symposium was interpreted as more hawkish than market expectations. Warsh emphasized the need for clear and sufficient evidence that core inflation is moving toward the target, leading the market to price in a 60% probability of a rate hike in September.