Warsh Raises Stakes for Fed Rate Hike at Jackson Hole Conference

At the annual Jackson Hole economic conference, Federal Reserve Chair Kevin Warsh renewed his inflation-fighting credentials in a speech that opened the door to potential rate hikes in the coming months. This has put more pressure on the central bank to increase interest rates when it next meets in mid-September if inflation doesn't improve.

Warsh's high-profile speech was mostly praised afterward by economists and other Fed policymakers in attendance, but there was also some pushback and criticism during the first day of the conference. Warsh noted that he and other Fed officials who supported keeping rates unchanged at their July 28-29 meeting thought it wise to await new information before deciding whether a change in interest rate policy was advisable.

However, elsewhere in his remarks, Warsh said that such evidence of cooling inflation hasn't emerged, even as gas prices have come down somewhat. This suggests that Warsh wants to see clear evidence of improving inflation before making any decisions on interest rates.