Warsh Signals Potential Rate Hike as Inflation Concerns Linger

Federal Reserve Chair Kevin Warsh signaled that inflation remains too high and interest rate hikes are possible in a speech at Jackson Hole, Wyoming. Warsh said the central bank needs to see 'clearly and at sufficient speed' that inflation is moving toward its 2 percent target.

He emphasized that controlling inflation 'sits squarely' with the Fed and did not rule out further action if rates are not doing enough to slow the economy. The next rate decision meeting is on September 15-16, but Warsh's comments suggest a hike could be more likely than previously thought.