Update: US Equity Indexes Fall, Treasury Yields Jump After Warsh Reiterates Inflation Commitment

03:13 PM EDT, 08/28/2026 (MT Newswires) -- (Updates with index/price moves and geopolitical news from the first paragraph.) US equity indexes fell, while government bond yields advanced after Federal Reserve Chairman Kevin Warsh said inflation is the more concerning part of the central bank's dual mandate, recommitting to the 2% inflation goal. The Nasdaq Composite fell 0.6% to 26,381.5, and the S&P 500 slipped 0.3% to 7,706.2 ahead of Friday's close. The Dow Jones Industrial Average declined 0.1% to 53,533.2. Speaking at the annual Jackson Hole Economic Policy Symposium, Warsh, as expected, did not offer any change to the monetary policy outlook but strongly reaffirmed his commitment to the Fed's mandates while offering little guidance on the timing of rate changes. "The Fed's price-stability objective of 2%, as measured by the personal consumption expenditures price index, is a firm, fixed target," Warsh said. "Let's be equally clear about another aspect of the objective: Price stability is not self-executing, nor is inflation necessarily mean-reverting. It is the Fed's job to deliver stable prices." US Treasury yields rose after midday. The 10-year yield climbed 4.8basis points to 4.72%, and the two-year soared 11.3 basis points to 4.35%. Mediators in the Iran war are stepping up efforts to get the Strait of Hormuz reopened, with Tehran agreeing to draw up a list of conditions to restore normal traffic after a Qatari emissary pressed the Iranians to respect freedom of navigation, Reuters reported. With the US having disengaged from talks in favour of an economic pressure campaign, the prime minister of Qatar, a US ally, met senior Iranian leaders in Tehran on Thursday, stressing the importance of returning to the pre-war status of open shipping through an international waterway, the news report said. With the US having disengaged from talks in favour of an economic pressure campaign, the prime minister of Qatar, a US ally, met senior Iranian leaders in Tehran on Thursday, stressing the importance of returning to the pre-war status of open shipping through an international waterway, the news report said. The front-month US West Texas Intermediate crude oil contract slipped 0.4% to $83.16 per barrel, and global benchmark North Sea Brent edged down 0.4% to $89.37 per barrel. In economic news, the University of Michigan consumer sentiment index was revised upward on Friday to 51.7 for August from 51.0 in the preliminary estimate, compared with expectations of no revision in a survey compiled by Bloomberg. That was still below the final reading of 55.2 in July. Respondents expected a 4% inflation rate over the next year, down from 4.2% in July and 3.3% annual inflation over the next five years, the same as in July.