Warsh Signals Rate Hike as Inflation Tops Fed Priority

At the Federal Reserve Bank of Kansas City's annual economic symposium in Jackson Hole, Wyoming, Kevin Warsh delivered his first speech as chairman. The central banker emphasized that curbing inflation is the top priority for the Fed.

Warsh stated that policymakers must be confident underlying inflation is moving towards the 2% target 'clearly and at sufficient speed.' If not, they have 'work to do.'

This message caused a jump in expectations for a near-term rate increase. The next round of consumer inflation data will be released on September 11, just days before policymakers gather in Washington on September 15-16.