Warish's speech revives rate hike prospects
Federal Reserve Chair Jerome Powell's speech emphasized the central bank's commitment to continue fighting inflation. This led to an increase in the probability of a rate hike in September from around 70% to about 48%, according to trading platform forecasts. Short-term bond yields, especially the two-year Treasury notes, rose to their highest levels since late July. Despite recent improvements in inflation data, Powell warned of the need to ensure that inflation declines clearly and quickly. He pointed out that the Fed still needs to work towards reducing inflation to its 2% target. The Federal Reserve is scheduled to issue its interest rate decision on September 16, amid widespread anticipation of its upcoming steps in monetary policy management.
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