Warsh said <\/a>recent data “do not tell me that underlying trends have meaningfully improved,” noting that inflation, measured by the Fed’s preferred Personal Consumption Expenditures index, remained <\/a>at 3.7% in July. <\/p>\n The remarks were among Warsh’s clearest acknowledgments yet that higher rates could still be needed.\u00a0 <\/p>\n He also said “short-term interest rates are the predominant tool” for fulfilling the Fed’s mandate, while stopping short of offering explicit forward guidance. <\/p>\n Markets quickly repriced the outlook.\u00a0 <\/p>\n Polymarket odds<\/a> of a Fed rate hike in 2026 jumped to about 69%, from roughly 56% earlier in the day, according to the prediction market.\u00a0 <\/p>\n Reuters also reported <\/a>that expectations for a September rate hike increased after the speech, while the two-year Treasury yield reached its highest level in about a month. <\/p>\n The shift spilled into crypto markets, with the total cryptocurrency market capitalization falling about 0.9% to $2.65 trillion. <\/p>\n Higher interest rates can weigh on crypto <\/a>and other risk assets because they raise borrowing costs and increase the returns available from lower-risk investments.\u00a0 <\/p>\n At the time of writing, Bitcoin traded <\/a>at $79,432, down 1.02% over 24 hours. Ether was at $2,507, down 0.16%, while XRP traded at $1.43, down 1.95% as per data by Decibel. <\/p>\n Related: Nasdaq-listed stock plunges 29% after announcing plan to buy Bitcoin<\/a> <\/p>\n This story was originally published by TheStreet<\/a> on Aug 28, 2026, where it first appeared in the MARKETS<\/a> section. Add TheStreet as a Preferred Source by clicking here.<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"Federal Reserve Chair Kevin Warsh put inflation back at the center of the monetary policy debate on Friday,…\n","protected":false},"author":2,"featured_media":872139,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,2009,99,164,13699,176,64450,231620,440672,233625],"class_list":["post-872138","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-bitcoin","tag-business","tag-economy","tag-fed","tag-federal-reserve","tag-jackson-hole-symposium","tag-kevin-warsh","tag-thestreet","tag-warsh"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/872138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=872138"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/872138\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/872139"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=872138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=872138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=872138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a> Fed rate hike odds, source: Polymarket <\/p>\n