Warsh Signals Potential Rate Hikes Amid Elevated Inflation Concerns

US Federal Reserve Chair Kevin Warsh has hinted at potential interest rate hikes to combat elevated inflation. In his speech at the Fed's annual conference in Jackson Hole, Wyoming, Warsh emphasized that inflation remains too high and is unlikely to move back to the central bank's target on its own.

Warsh noted that despite recent cooling of inflation data, underlying trends have not improved significantly. He stated, 'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,' adding, 'Otherwise, we have work to do.'

The Fed chair faces high stakes with his speech as questions swirl around Wall Street about his focus on fighting inflation.

Warsh's remarks did not necessarily signal a rate hike at the next meeting in September 15-16. However, he suggested that interest rates may not be high enough to bring inflation down to the Fed's 2% target.