Warsh Signals Rate Hikes May Be Needed to Combat Stubborn US Inflation

Federal Reserve Chair Kevin Warsh signaled that interest rate hikes may be needed to combat stubbornly elevated inflation in the US.

In a speech at the Fed's annual conference in Jackson Hole, Wyoming, Warsh acknowledged that recent US reports show inflation has cooled slightly, but 'they do not tell me that underlying trends have meaningfully improved.'

'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.'

The comments from the new Fed chair reassured Wall Street that fighting inflation remains a priority for the central bank.