Warsh Flags Hawkish Tone on Inflation Ahead of September Fed Meeting

Federal Reserve Chairman Kevin Warsh signaled a hawkish stance on inflation during a speech at Jackson Hole, Wyoming, where he emphasized that elevated prices should be the central bank's main focus.

Warsh reiterated the Fed's commitment to its 2% personal consumption expenditures (PCE) inflation objective, describing it as 'a firm, fixed target.'

He pointed out that government data released this week showed PCE inflation at 3.7% for July and noted that 54% of PCE components had annualized inflation above 3% over the past 12 months.

'None of these measures are perfect, but they all tell a similar story: Inflation is running above our 2 percent target,' Warsh said.