Warsh Sounds Alarm on Persistent Inflation Amid Jackson Hole Speech

Federal Reserve Chair Kevin Warsh expressed concern that inflation remains too high during his first speech at the central bank's annual symposium in Jackson Hole, Wyoming. He emphasized the need for a 'quieter' central bank, saying investors shouldn't rely primarily on the Fed for their next trade.

Warsh stated that recent inflation readings were better than expected but didn't indicate any meaningful improvements in underlying trends. The latest reading from the Federal Reserve's preferred gauge showed annual inflation at 3.3% in July, despite Wall Street anticipating a slight cooldown to 3.2%.

The Fed Chair called for confidence that underlying inflation is moving towards the central bank's objective, clearly and quickly enough. Otherwise, he warned, 'we have work to do.'