Gulf Stocks Fall as Warsh Fuels Fed Rate-Hike Bets
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- Gulf stocks fell as bets on a Fed rate hike rose following remarks by Warsh, per Reuters' headline coverage.
- Warsh, who publicly made the case for higher rates and took a tough stance on inflation, now confronts a "no-win situation" on policy per the New York Times, while Bloomberg reports bond investors grew wary of a looming Fed hike.
Why it matters: Warsh's comments appear to have shifted rate-hike expectations enough to dent Gulf equities and rattle bond holders in the same session — a signal that markets now price his hawkish lean into Fed policy pricing. Gulf bourses are tightly tethered to U.S. monetary policy, so even rhetorical pivots from a potential Fed figure carry outsized weight.
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