Dollar rallies after Fed chief lifts rate expectations

Federal Reserve Board Chairman Kevin Warsh speaks at a news conference at the Federal Reserve on Jul 29, 2026. (Photo: AP/Mark Schiefelbein) 29 Aug 2026 05:10AM NEW YORK: Wall Street stocks dipped while the dollar rallied Friday (Aug 28) after Federal Reserve chief Kevin Warsh flagged fighting high inflation as a priority in a speech received as more hawkish than expected."We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do," Warsh said in a highly anticipated speech.Short-term US Treasury bonds, which reflect monetary policy expectations, saw yields spike in anticipation of a higher Fed rate after the speech in Jackson Hole, Wyoming.Futures markets also raised the odds of a rate hike in September, while