Analysts say Warsh's Jackson Hole speech raised the odds of a rate hike

Market watchers said Federal Reserve Chair Kevin Warsh struck a more hawkish tone than expected in his Jackson Hole speech, lifting expectations that the Fed could raise interest rates at its September meeting. Deutsche Bank said it still expects the Fed to deliver 50 basis points of hikes this year, while other firms pointed to Warsh's emphasis on inflation risks and the 2% target as a sign that policymakers may keep tightening if disinflation slows. Fed funds futures reflected the shift in sentiment, with traders pricing a higher chance of a quarterpoint move next month. The report also noted that the comments pressured gold and weighed on Asian shares, while some analysts said the Fed's approach could create tension with the U.S. Treasury over bond market policy.