Warsh at Jackson Hole: Probability of interest rate hike exceeds 50%

Federal Reserve Chair Kevin Warsh signaled at Jackson Hole that the fight against inflation remains unfinished, prompting markets to price in a nearly 60% probability of an interest rate hike in September. Warsh suggested that current financial conditions may not be sufficiently restrictive to bring inflation down to the 2% target. Analysts from Barclays and Societe Generale now anticipate a potential 25 basis point increase, with future decisions dependent on upcoming August inflation data and the central bank's ongoing assessment of the economy.