Warsh Seeks to Reassure Markets on Inflation Fight

Fed Chair Kevin Warsh sought to reassure markets that he and the US Federal Reserve Board are committed to combatting America's elevated inflation rate, which stands at 3.7 percent.

In a speech at the annual Jackson Hole conference of economists and central bankers in Wyoming, Warsh emphasized that price stability is not self-executing and that it's the Fed's job to deliver stable prices.

The Fed has a dual mandate: maximising employment while maintaining stable prices. Warsh was positive about employment, but expressed concern about price stability, stating that 'the Fed's predominant focus now should be on prices.'

Warsh also clarified that the central bank will not shift its preferred measure of inflation from the personal consumption expenditures (PCE) price index to another metric.