Warsh Signals Rate Hikes May Be Needed to Tame Inflation

Federal Reserve Chairman Kevin Warsh spoke at the annual Jackson Hole Economic Symposium in Wyoming, where he signaled that rate hikes may be necessary to bring inflation down. In his speech, Warsh stated that inflation is still too high and that even though it has cooled somewhat recently, the data '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.'

Warsh emphasized that inflation data is more concerning than labor market trends, where job creation has slowed but unemployment and layoffs are low. The Fed chair's speech was the most detail he has given on his view of the economy since taking over in May.