Warsh Signals Rate Hikes May Be Needed to Tame Stubborn Inflation

Fed Chair Kevin Warsh indicated that interest rate hikes may be necessary 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 'they do not tell me that underlying trends have meaningfully improved.'

In his first high-profile speech at the conference, Warsh emphasized that inflation remains too high and suggested that the central bank may need to raise interest rates in coming months. This marks a clearer signal from the Fed Chair than he has previously sent about his economic outlook.