Warsh Signals Rate Hikes May Be Needed to Combat Stubborn Inflation

Fed Chair Kevin Warsh has signaled that interest rate hikes may be necessary to combat stubbornly high US inflation. Speaking at the Fed's annual conference in Jackson Hole, Wyoming, on August 28, Warsh acknowledged that recent reports show a slight cooling of inflation, but emphasized that underlying trends have not improved meaningfully.

According to Warsh, inflation remains too high and the central bank must be confident that underlying inflation is moving towards its objective at sufficient speed. He stated, 'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed.'