Warsh Signals Potential Rate Hikes to Combat Persistent Inflation

Kevin Warsh, Chairman of the Federal Reserve, stated that inflation is still too high and may require interest rate hikes to bring it down. He made this remark at the Fed's annual conference in Jackson Hole, Wyoming.

In his speech, Warsh acknowledged that recent US data shows a slight cooling of inflation, but noted that underlying trends have not improved meaningfully. He emphasized that the central bank must be confident that underlying inflation is moving towards its 2% target 'clearly and at sufficient speed.'

Warsh reiterated his skepticism about providing guidance on future interest rate policy, but suggested that rates may not be high enough to bring inflation down. He pointed out that short-term interest rates are the predominant tool the Fed can use to lower inflation.