Federal Reserve Chair Kevin Warsh adopted an unexpectedly hawkish stance during his Jackson Hole speech, boosting expectations for a rate hike in September. Fed funds futures contracts now show a 60.4% chance of a 25 basis point hike, up from around 56% on Friday. Gold fell and Asian stocks declined on Monday. Analysts highlight the emphasis on inflation risks and explicit commitment to the 2% inflation target, which could put the Fed at odds with the U.S. Treasury.
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