NEW YORK, Aug 29, 2026 (BSS/AFP) - Wall Street stocks dipped while the dollar rallied Friday after Federal Reserve chief Kevin Warsh flagged fighting high inflation as a priority in a speech received as more hawkish than expected. "We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do," Warsh said in a highly anticipated speech. Short-term US Treasury bonds, which reflect monetary policy expectations, saw yields spike in anticipation of a higher Fed rate after the speech in Jackson Hole, Wyoming. Futures markets also raised the odds of a rate hike in September, while the dollar jumped against the euro and other major currencies. At 3.7 percent, inflation in the world's biggest economy is nearly double the Fed's target of two percent, and investors worry that high energy prices from the Iran war could persist as winter approaches. "On the price-stability side of our mandate, the numbers are more concerning," Warsh said, even as he said he was "impressed" with US economic performance, with employment "doing well". Wall Street stocks remained in positive territory for a stretch after the speech, but later moved downward. The S&P 500 finished down 0.3 percent. "Kevin Warsh's speech at the Jackson Hole symposium delivered a far clearer -- and hawkish -- message than his last press conference appearance" in July, said Stephen Brown, an economist at Capital Economics. "Hikes are not guaranteed, but Warsh is now at least suggesting he is on board with them if economic growth remains strong" and inflation remains elevated, he said. Earlier, European stocks closed higher, with Paris climbing one percent as luxury shares led gains. Asian equity markets largely advanced Friday, though tech firms struggled to extend Thursday's rally that came on the back of Nvidia's profit blowout and bumper forecast, which soothed worries over the AI boom. Tokyo and Hong Kong rose, while Seoul and Shanghai retreated. Oil prices finished slightly lower as traders weigh assessed the mixed signals over the prospects for a reopening of the Strait of Hormuz against US threats against Iran. US officials have vowed an "economic asphyxiation" to make Iran open the Strait of Hormuz -- through which about a fifth of world oil usually passes -- after six months of war. - Key figures at around 2020 GMT - New York - Dow: DOWN less than 0.1 percent at 53,559.99 (close) New York - S&P 500: DOWN 0.3 percent at 7,711.47 (close) New York - NASDAQ: DOWN 0.5 percent at 26,402.42 (close) London - FTSE 100: UP 0.3 percent at 10,824.26 (close) Paris - CAC 40: UP 1.0 percent at 8,401.18 (close) Frankfurt - DAX: UP 0.8 percent at 26,569.99 (close) Tokyo - Nikkei 225: UP 0.4 percent at 66,405.56 (close) Hong Kong - Hang Seng Index: UP 0.1 percent at 25,584.79 (close) Shanghai - Composite: DOWN 0.1 percent at 3,952.18 (close) Euro/dollar: DOWN at $1.1586 from $1.1653 on Thursday Pound/dollar: DOWN at $1.3538 from $1.3593 Euro/pound: DOWN at 85.58 pence from 85.72 pence Dollar/yen: UP at 160.07 yen from 159.39 yen Brent North Sea Crude: DOWN 0.4 percent at $89.31 per barrel West Texas Intermediate: DOWN 0.2 percent at $83.40 per barrel