Warsh Sounds Alarm on Inflation, Implies Rate Hikes Ahead

Federal Reserve Chairman Kevin Warsh spoke at the Kansas City Fed's annual symposium in Jackson, Wyoming, on Friday. He expressed concerns about inflation numbers and hinted that the Fed may need to take action to combat price stability.

Warsh highlighted the strong economy and healthy labor markets, citing high profits, robust business capital expenditures, vigorous corporate borrowing, and a labor market consistent with full employment. However, he emphasized that inflation is still running above the Fed's 2 percent target.

According to Warsh, about half of the items in the personal consumption expenditures price index are rising faster than 3 percent, with little change recently. He also mentioned that commodity prices are creating concerns about the direction of inflation.