Warsh Signals Rate Hikes May Be Needed to Combat Stubborn Inflation

Fed Chair Kevin Warsh has signaled that rate hikes may be needed to combat stubbornly elevated US inflation, which remains above the central bank's target of 2%.

In his first major speech at the Fed's annual conference in Jackson Hole, Wyoming, Warsh acknowledged that recent data show a slight cooling of inflation, but emphasized that underlying trends have not improved meaningfully.

'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,' Warsh said. 'Otherwise, we have work to do.'