STOCKS | Fed Chair Kevin Warsh Puts New Pressure on Stocks

U.S. stocks fell after Fed Chair Kevin Warsh struck a hawkish tone at the Jackson Hole Economic Policy Symposium. According to Sina Finance, Citi U.S. equity strategist Scott Chronert said higher-for-longer rate expectations have created a sentiment headwind, even as fundamentals remain solid. Warsh said inflation remains above the Fed's 2% target and that the central bank's top priority should be prices. He also called recent inflation data concerning and said core inflation must clearly move toward the target fast enough, or the Fed will keep acting. After his remarks, the three major U.S. stock indexes all moved lower, while Treasury yields rose. Traders also priced in nearly a 61% chance of a rate hike at the September FOMC meeting.