Federal Reserve Chair Kevin Warsh signaled at the Jackson Hole symposium on August 28 that the US central bank has not finished tightening, with inflation remaining its top priority. This hawkish stance pushed the implied probability of a September rate hike to 57-60%, up from 34-35% before his speech. The MSCI emerging-market equities gauge dropped 1.4% on August 31, its steepest single-day decline since August 24, while a basket of developing-nation currencies slipped 0.1%, snapping a nine-session winning streak. South Korea and Taiwan led the equity declines, with the Indonesian rupiah notably underperforming.
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