Warsh Signals Potential Rate Hikes to Combat Stubborn Inflation

Federal Reserve Chair Kevin Warsh signaled that interest rate hikes may be necessary to combat stubbornly high inflation in the US. At the Fed's annual conference in Jackson Hole, Wyoming, Warsh acknowledged that recent reports show inflation has cooled a bit, but 'they do not tell me that underlying trends have meaningfully improved.'

This is a clearer signal than previously given by Warsh about his economic outlook. The central bank may need to raise interest rates in the coming months to bring down inflation.