Warsh Signals Rate Rise Amid Inflation Threat at Jackson Hole

US Federal Reserve chair Kevin Warsh signaled that interest rates may rise to combat inflation in a speech at the annual Jackson Hole gathering of central bankers and economists. He stated that unless inflationary pressures recede, 'we have work to do'.

The Fed's job is to meet its mandates, and according to Warsh, 'underlying inflation must be moving to our objective clearly and at sufficient speed.'

This marks a significant shift from his previous stance on giving forward guidance, which he had previously pledged not to provide. The comments come as the US faces rising inflation, with consumer prices increasing 3.7% - nearly double the Fed's 2% target.