Fed Warns of Rate Hikes Amid Persistent Inflation

The personal consumption expenditures price index, a key inflation gauge closely watched by the Federal Reserve, remained high in July at 3.7%, matching June's rate.

Fed Chair Kevin Warsh signaled that interest rates may need to rise in the coming months to combat inflation, which has been above the Fed's target of 2% since Iran was attacked in February.

Warsh acknowledged that recent US data show a slight cooling of inflation but stated 'they do not tell me that underlying trends have meaningfully improved.'