Editorial, News & commercial office:
55/A, H M Siddique Mansion (Level-7), Purana Paltan, Motijhel C/A, Dhaka-1000. Phone: +8802226640056,
e-mail: [email protected], [email protected]
The US dollar rallied against major international currencies while Wall Street stocks retreated on Friday after Federal Reserve Chair Kevin Warsh prioritized the fight against stubborn inflation in a closely watched Jackson Hole symposium address that markets interpreted as notably more hawkish than anticipated.
Speaking at the annual economic policy symposium in Jackson Hole, Wyoming, Warsh delivered a clear signal that the central bank remains prepared to tighten monetary policy further if price pressures fail to cool. Underscoring the Fed's primary objective of price stability, Federal Reserve Chair Kevin Warsh stated:
"We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. On the price-stability side of our mandate, the numbers are more concerning."
With US inflation hovering at 3.7 percent—nearly double the Fed's 2.0 percent target—investors remain anxious over sustained cost pressures amplified by elevated energy prices linked to ongoing Middle East tensions. Following the remarks, yields on short-term US Treasury bonds spiked as futures markets sharply priced in higher probabilities of an interest rate hike at the upcoming September policy meeting.
The benchmark S&P 500 index erased earlier intraday gains to close 0.3 percent lower at 7,711.47, while the tech-heavy NASDAQ declined 0.5 percent to 26,402.42. In contrast, the US Dollar Index strengthened significantly, sending the euro down to $1.1586 and pushing the dollar up to 160.07 against the Japanese yen. Global energy markets closed slightly lower as traders weighed persistent geopolitical uncertainties around maritime passage in the Strait of Hormuz against US economic countermeasures.
https://thedailyexpress.news/news/business/1f1a365e-4754-60f0-92ec-086004d1b5c5