Warsh Labels US Inflation Concerning, Hinting at Possible Interest Rate Hikes
US Federal Reserve Chairman Kevin Warsh addressed high inflation in the US economy at the central bankers' meeting in Jackson Hole, Wyoming. He described current financial conditions as 'concerning', citing that the numbers on price stability are more concerning than before.
The Fed has missed its long-term two percent target for inflation for over five years, with the latest measure of its preferred gauge coming in at 3.7 percent this week.
Warsh emphasized that the central bank's predominant focus should be on prices and ensuring underlying inflation is moving towards its objective 'clearly and at sufficient speed'.
The Fed has held rates steady through 2026, but a growing faction of policymakers have called for interest rate hikes to combat inflation fueled by US President Donald Trump's policies.