Warrash's speech Reignites Rate Hike Risks

Following the speech of Federal Reserve Chairman Jerome Powell, who emphasized the continuation of the fight against inflation, investors have renewed their expectations of a rate hike in September. Currently, there is roughly a 48-56% chance of an increase by 25 basis points, compared to previous forecasts that leaned toward no change. Powell also stated that recent inflation data does not indicate a fundamental improvement, increasing the likelihood that interest rate increases will continue. This has led to higher short-term bond yields and market expectations regarding the upcoming decision on September 16.