The Dow Jones Industrial Average pared gains and moved close to negative territory amid concerns that the Federal Reserve will accelerate interest rate hikes in September, following Fed Chair Kevin Warsh's commitment to fighting inflation. As of 11:37 p.m. Thailand time, the Dow was up just 15.81 points, or 0.03%, at 53,585.25 points, after surging more than 200 points earlier. Investors increased the probability of a 0.25% rate hike at the September meeting to 59.5% from 35.4%, while the probability of holding rates at 3.50-3.75% fell to 40.5% from 64.6%. In a speech at Jackson Hole, Warsh said that improved PCE and CPI figures did not convince him that the underlying inflation trend had improved significantly. Meanwhile, Cleveland Fed President Beth Hammack said the Fed is still far from its inflation target and it is time to act, as she was one of three dissenting voters against holding rates at the July meeting.
Fed signals faster rate hikes, raising probability of September hike, which increases the effective federal funds rate.
Fed signals faster rate hikes, pushing yields up, which lowers bond prices.
