Weekly Recap: Stock Markets Slip and Bitcoin Falls as Fed Chair Warsh Sparks Rate Hike Fears

TLDR

• Fed Chair Kevin Warsh spoke at Jackson Hole, hinting inflation is still a concern
• Odds of a September rate hike jumped from 35% to over 57%
• The Nasdaq fell 0.52%, S&P 500 dropped 0.25%, Russell 2000 lost 1.4%
• Bitcoin fell 2.77% as rate hike bets rose
• The dollar surged, posting its biggest daily gain in over two months

Markets pulled back on Friday after Federal Reserve Chair Kevin Warsh delivered his first Jackson Hole speech, signaling that more interest rate hikes could be on the way.

FED WARSH AT JACKSON HOLE (Summary):

On policy:

• He gave no timetable for a rate hike and said the speech should not be viewed as forward guidance or a formal reaction function

• Short-term interest rates remain the Fed’s main policy tool

• A “good majority” at the July… pic.twitter.com/pUZUOUa0Lj

- Wall St Engine (@wallstengine) August 28, 2026

Warsh said the Fed “will have work to do” if inflation does not return to its 2% target. He also acknowledged that financial conditions do not look restrictive right now.

… Continue reading the full article at the original source below.