Warsh Signals Rate Hikes May Come as Inflation Remains Above Target

The Federal Reserve may raise interest rates in response to high inflation, according to new signals from Fed Chair Kevin Warsh.

Warsh acknowledged that recent data show inflation has cooled slightly, but 'they do not tell me that underlying trends have meaningfully improved.'

In his first speech at the annual conference in Jackson Hole, Wyoming, Warsh emphasized the need for underlying inflation to move towards the central bank's 2% target.

'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,' he said. 'Otherwise, we have work to do.'