Warsh Signals Rate Hikes as US Inflation Stays Stubborn

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

In his first high-profile speech at the conference, Warsh emphasized that inflation remains too high and hinted at potential rate hikes to address the issue. This is a clearer signal than he has previously sent about his economic outlook.