Fed's Warsh Tells Sintra 'Prices Too High,' Refuses Rate Guidance; Gold and Yields Jump
- Fed Chair Kevin Warsh, speaking at the ECB forum in Sintra on July 1, said inflation risks have eased but declared 'prices are too high' and declined to provide forward guidance on rates, sending Treasury yields higher and briefly reviving the 'debasement trade' (MarketWatch, Bloomberg).
- Gold held gains on the remarks while the dollar came under pressure; Morgan Stanley and other banks are now publicly challenging consensus dollar optimism into the second half, citing moderating U.S. core inflation (Bloomberg).
- The comments deepened a global tech and chip rout, with South Korean stocks tumbling 6% on AI jitters and Nasdaq futures sliding ~0.8% as traders repositioned for the jobs report and lingering Fed uncertainty (Bloomberg, WSJ live coverage).