Equities Rise as Rate Hike Bets Increase Following Fed Chair Kevin Warsh's Speech
Global equities rose alongside U.S. short-dated Treasury yields and the dollar on August 28, 2026, after Federal Reserve Chair Kevin Warsh signaled that more work may be needed to bring inflation back to target at the Jackson Hole symposium. Traders increased their bets for a rate hike in September from 35.4% to 55.7%, according to CME Group's FedWatch tool. Warsh emphasized concerns about persistent inflation and stable labor markets, which led investors to interpret his remarks as hawkish. The Dow Jones Industrial Average rose by 0.30%, the S&P 500 gained 0.38%, and the Nasdaq Composite climbed 0.41%. In bond markets, the yield on the 2-year Treasury note increased significantly while gold prices fell. The U.S. dollar also strengthened against major currencies like the euro and yen following Warsh's comments. Analysts noted that his remarks reinforced the Fed’s commitment to controlling inflation without explicitly stating a rate hike path.
Tickers: $CME
Topics: dollar equities Federal Reserve inflation Treasury yields