The US dollar index rose 0.9% to 99.7, while the two-year US Treasury yield increased by approximately 10 basis points to 4.35% following the Federal Reserve's hawkish messaging.

On 2026-08-26, gold prices fell after Federal Reserve Chair Kevin Warsh signaled a hawkish stance on inflation, raising the probability of a 25 basis point rate hike in September from 35% to 60%.

Federal Reserve Chair Kevin Warsh stated on 2026-07-25 that inflation remains too high and suggested the central bank may need to raise interest rates in the coming months.

Federal Reserve Chair Kevin Warsh stated that 54% of the personal consumption expenditures basket components rose faster than 3% over the past 12 months.

Pranav Mer, senior vice president at JM Financial Services Ltd, stated that selling intensified on Friday following Federal Reserve Chair Kevin Warsh's speech on inflation and monetary policy.