US equities finished higher for the week, boosted by strong earnings from Nvidia and a pullback in oil prices. At Jackson Hole, Kevin Warsh reaffirmed the Fed’s commitment to its 2% inflation target and warned that further policy tightening is possible if inflation does not return to target “clearly and at sufficient speed”. Warsh did not provide forward guidance, but markets are now pricing about a 60% chance of a rate hike at the Fed’s September meeting following his remarks. The Fed’s preferred inflation measure, Core PCE, came in at 3.3% year-on-year, in line with forecasts. Q2 US GDP growth was confirmed at an annualised 1.5%, unchanged from the first estimate. 

Germany’s Q2 GDP growth was revised up to 0.3%,…