Fed Signals Potential Rate Hikes
Federal Reserve Chair Kevin Warsh indicated that interest rate hikes may be necessary if inflation fails to return to the two percent target. Short-term Treasuries fell and market expectations for a rate increase next month rose following his remarks at Jackson Hole.
Federal Reserve Chair Kevin Warsh signaled that interest rate hikes may be needed to curb inflation during a speech on Friday in Jackson Hole. The remarks drove the 2-year Treasury yield up 11 basis points to 4.34%. Markets are now pricing in a 60% probability of an increase next meeting.
