U.S. Stock Futures Unchanged as Markets Assess Fed Chairman Warsh’s Remarks
U.S. stock futures remained largely unchanged in European trade on Monday, with investors evaluating Federal Reserve Chairman Kevin Warsh's comments from Jackson Hole regarding inflation and interest rates. Warsh indicated that underlying inflation remains too high despite better summer data, emphasizing the need for confidence before easing policy. Market pricing now suggests a 60% chance of a rate hike in September according to Capital Economics. The Fed is expected to continue tightening monetary policy due to ongoing U.S. economic strength. Short-dated Treasury yields have risen as investors price-in potential near-term increases, though broader market moves were limited with S&P 500 and Dow futures down slightly while Nasdaq-100 remained flat. Meanwhile, PG&E shares dropped sharply after new California wildfire legislation raised concerns over liability financing. Other markets showed mixed performance: gold fell as the dollar was stable; Brent crude rose due to Middle East tensions affecting oil supply fears.
Tickers: $PCG
Topics: Federal Reserve interest rates stock futures Treasury yields