US Inflation Remains High, Fed Signals Rate Hikes

The latest economic data from the US shows that inflation remains high, with prices rising 3.7% in July compared to the same period last year.

This is according to the Commerce Department's personal consumption expenditures price index (PCE), a key gauge watched by the Federal Reserve.

Fed Chairman Kevin Warsh signaled that interest rates may need to rise to combat inflation, which has worsened since the US and Israel attacked Iran in late February.

Warsh acknowledged that recent data show inflation has cooled slightly, but 'they do not tell me that underlying trends have meaningfully improved.'

In his speech at the Fed's annual conference in Jackson Hole, Wyoming, Warsh emphasized the need for the central bank to be confident that underlying inflation is moving towards its 2% target.