Warsh Hints at Rate Hikes to Tame Stubborn US Inflation

Federal Reserve Chair Kevin Warsh signaled on Friday that interest rate hikes may be necessary to combat stubbornly elevated US inflation. In his first high-profile speech at the Fed's annual conference in Jackson Hole, Wyoming, Warsh acknowledged that recent US reports show a slight cooling of inflation but emphasized that underlying trends have not improved meaningfully.

'They do not tell me that underlying trends have meaningfully improved,' Warsh said, according to the transcript. This suggests that the central bank may need to raise interest rates in the coming months to bring down inflation.