Warsh fans Fed rate hike bets, crude up on US-Iran strikes
Bets on a Federal Reserve rate hike have surged after Kevin Warsh's speech, with upward pressure on prices coming from the spike in energy costs caused by the Iran war (AFP Photo)
Hawkish comments from Federal Reserve boss Kevin Warsh saw investors ramp up bets on a U.S. interest rate hike, while oil prices spiked after a fresh flare-up in the U.S.-Iran war.
With inflation remaining stubbornly high — largely on the back of elevated energy costs — the U.S. Fed has come under pressure to act, and Warsh's refusal to provide guidance has stoked uncertainty.
But in a highly anticipated speech at the Jackson Hole symposium of central bankers and economists in Wyoming last week, he left traders with few doubts that he was ready to increase borrowing costs.
