Warsh Signals Potential Rate Hikes Amid Persistent US Inflation

US inflation remains stubbornly high, and Federal Reserve Chair Kevin Warsh has signaled that interest rate hikes may be needed to bring it down. In a speech at the Fed's annual conference in Jackson Hole, Wyoming, Warsh acknowledged that recent US reports show a slight cooling of inflation but emphasized that underlying trends have not improved meaningfully.

'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,' Warsh said. 'Otherwise, we have work to do.'

Warsh's comments reassured Wall Street that fighting inflation remains the Fed's top priority, but he did not imply that a rate hike is imminent.