Warsh at Jackson Hole: Sticky 3.7% PCE pushes September rate hike odds to 58%. How are you positioning?
u/unconventionalbook ·
Reddit — r/investing
· August 28, 2026 at 22:48
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Fed Chair Kevin Warsh definitely leaned hawkish at Jackson Hole today.
With core PCE still stuck at 3.7%, he basically said the Fed is backing away from giving the market "forward guidance." Stocks pulled back a bit on Friday because of it, though the S&P 500 still managed to green up for the week.
Looking at the CME FedWatch tool, the odds of another rate hike in September just spiked up to around 58%. It feels like any hopes for near-term rate cuts are completely off the table now, and the shift away from clear forward guidance is going to throw a lot of volatility into the mix.
Breakdown on the market reaction: [International Business Times](https://www.ibtimes.com/stocks-fall-after-warsh-warns-about-inflation-sp-500-closes-winning-week-3806931)