Warsh Suggests Interest Rate Hikes May Be Needed to Combat High Inflation

Fed Chair Kevin Warsh signaled that interest rate hikes may be necessary to combat high inflation at the central bank's annual conference in Jackson Hole, Wyoming. In a speech on August 28, 2026, Warsh acknowledged that recent inflation data show some cooling, but noted that underlying trends have not meaningfully improved.

Warsh emphasized the importance of bringing underlying inflation down to the Fed's target rate of 2%. He stated that 'we must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.'

The Fed chair's comments come ahead of the central bank's next meeting on September 15-16, where policymakers will decide whether to raise interest rates again.