Economy / Markets
Warsh's hawkish Jackson Hole debut sends two-year yield above 4.35% and tech stocks lower
Federal Reserve Chair Kevin Warsh used his first Jackson Hole symposium address on Friday to argue that short-term rates remain the Fed's 'predominant tool' and that he would be 'hard pressed to describe broad financial conditions as restrictive,' pushing two-year Treasury yields up 13 basis points to roughly 4.35% and lifting the implied odds of a September rate hike to about 58% from 35% the prior day. U.S. stocks closed modestly lower — S&P 500 off 0.25%, Nasdaq down 0.52%, Dow essentially flat — while small caps led the decline and the peso slid against the dollar.