Warsh Faces Pressure to Hike Rates Amid Stubborn Inflation

Federal Reserve Chairman Kevin Warsh is under increasing pressure to hike interest rates to combat inflation. The Fed's preferred measure of inflation has topped its 2% target for more than five years, and core inflation has risen since last December.

Warsh has emphasized that the Fed will get inflation back to 2%, but he hasn't specified how. In congressional testimony earlier this month, he said the Fed has 'no tolerance' for higher inflation and pledged that it 'will deliver price stability.'

Some Fed officials have said rate hikes may be needed soon, including Lorie Logan, president of the Federal Reserve Bank of Dallas, who said 'modestly higher interest rates would better balance the outlook.'

However, others are more cautious. John Williams, president of the New York Fed and vice chair of the Fed's rate-setting committee, said there are encouraging reasons to expect that inflation has peaked and should edge down in the coming quarters.