Federal Reserve Interest Hike Odds Rise to 60% After Warsh Speech

After Federal Reserve chair Kevin Warsh's speech, the odds of an interest rate hike for September increased to nearly 60%, up from 35% the previous day, according to CME Group data. The Cboe Volatility Index (VIX) fell to 14.1, its lowest level this year, suggesting stock traders are adapting positively to potential hikes. U.S. equities remain stable, contrasting with declines in bitcoin and gold, each down at least 2.5%. This suggests that investors are preparing for higher rates, which could influence market volatility and stock performance going forward.