Warsh Suggests Rate Hikes May Be Needed to Tame Stubborn Inflation

At the annual Jackson Hole Economic Policy Symposium in Moran, Wyo., Federal Reserve Chair Kevin Warsh signaled that interest rate hikes may be needed to combat stubbornly elevated US inflation. Speaking at his first high-profile speech at the Fed's conference, Warsh acknowledged that recent inflation reports have shown a slight cooling, but warned that 'underlying trends have not meaningfully improved.'

Warsh emphasized that inflation remains too high and expressed concern about its persistence. His comments were seen as a clearer signal than he has previously sent about his economic outlook.