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 US inflation. Speaking at the Fed's annual conference in Jackson Hole, Wyoming, Warsh acknowledged that recent reports show inflation has cooled slightly but emphasized that underlying trends have not 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 appeared to reassure Wall Street investors that fighting inflation remains a priority for the central bank. While Warsh did not imply an imminent rate hike, he dismissed perceptions that inflation is no longer a threat.