Warsh Sounds Alarm on Inflation: Interest Rate Hike Chances Soar

Federal Reserve Chairman Kevin Warsh expressed concern about high inflation during his speech at the Jackson Hole Economic Symposium on August 28, 2026. He stated that until they are confident that inflation is moving toward their 2% target rate 'clearly and at a sufficient speed,' they 'have work to do.'

Warsh's remarks were seen as hawkish, causing stocks to erase daily gains and increasing the probability of an interest rate hike at the Fed's next meeting in mid-September. According to CME FedWatch, the market saw a 57% chance of a quarter-point increase after Warsh's speech.

This is in contrast to President Donald Trump, who has brushed off concerns about inflation and insisted prices under his administration have fallen. However, Warsh said that 'on the price stability side of our mandate, the numbers are more concerning,' with the latest reading of the central bank's preferred gauge of inflation coming in at 3.7% over 12 months.