Warsh Leaves Door Open to Rate Hikes Amid Inflation Worries

Fed Chair Kevin Warsh signaled that the Federal Reserve may raise interest rates if US inflation does not fall towards its 2% target quickly enough.

This was stated by Warsh at the annual economic policy symposium in Jackson Hole, Wyoming on August 28.

Warsh emphasized that short-term interest rates are the Fed's main tool for fulfilling its dual mandate of price stability and employment.

The remarks from Warsh have raised the possibility of a clash with US President Donald Trump, who has repeatedly urged the Fed to cut rates to support the economy.