Warsh Signals Rate Hike Possibility at Jackson Hole Conference

Fed Chair Kevin Warsh has raised the stakes for the central bank's next meeting in mid-September. In his speech at the annual Jackson Hole Economic Policy Symposium, he opened the door to potential rate hikes if inflation doesn't improve by then.

The government's next price report is scheduled for release just days before the meeting and could play a significant role in determining whether the Fed acts. Some analysts saw strong hints that a rate increase in September is a real possibility after Warsh noted that he and other Fed officials who supported keeping rates unchanged at their July 28-29 meeting wanted to see clear evidence of cooling inflation.

Austan Goolsbee, president of the Federal Reserve Bank of Chicago, downplayed any potential political influence on the Fed's decision. He stated that Fed officials focus solely on 'what is the state of the economy, and what do we need to do to stabilize prices and maximize employment?'