Warsh Stokes Inflation Uncertainty at Jackson Hole

Kevin Warsh, Federal Reserve chairman, will deliver his first major address at Jackson Hole while leaving investors uncertain about his views on inflation and interest rates.

The central question facing Warsh is whether the elevated inflation rate is due to temporary shocks or sustained demand. Three Fed officials voted for a rate increase in July, and others are open to tighter policy.

Inflation has remained above the 2% target for more than five years, stalling at around 3% after falling from 7%. Recent softer inflation data have eased expectations for a September hike, but officials remain divided over the current 3.6% policy rate.