Federal Reserve Chair Kevin Warsh signals upcoming interest rate hikes as oil prices spike to $92.68 per barrel amid US-Iran conflict
US Treasury yields jump while Asian markets fall following hawkish remarks from Fed Chair Kevin Warsh. Oil futures settle above $92 a barrel as renewed strikes between the US and Iran disrupt supply routes.
Asian stock indexes fell on Monday after Federal Reserve Chair Kevin Warsh delivered hawkish comments at the Jackson Hole symposium, indicating readiness to raise interest rates. Warsh stated that high inflation, currently at 3.7%, requires swift action, though he refused to commit to a specific rate decision. Treasury Secretary Scott Bessent predicted oil prices will drop to $40 per barrel once the conflict with Iran ends, contrasting sharply with current market levels. Brent crude futures settled at $92.68 a barrel, up 0.8% from Friday's close, while West Texas Intermediate finished at $91.48. Retail US diesel prices reached record highs, averaging $5.85 a gallon. Rising energy costs continue to drive global inflation fears, pushing short-term US Treasury yields to their highest levels since 2023.
