US Inflation Still Lingers Above 2 Percent Target

The Federal Reserve's chairman, Kevin Warsh, believes that inflation in the United States remains too high. Despite strong economic activity and a stable labor market, the rate of price increases is still above the central bank's target of 2 percent.

The Fed's most closely watched measure of inflation was at 3.7 percent over the past 12 months, with a notable increase to 4.1 percent in the past six months.

Warsh emphasized that policymakers must be confident that underlying inflation is moving toward the target at a sufficient pace. He stated, 'Although the personal consumption expenditure and consumer price index figures this summer are better than expected, the data have not convinced me that the underlying trend has improved significantly.'