Warsh Teases Rate Hike Amid Ongoing Inflation Worries

Federal Reserve Chairman Kevin Warsh hinted at a potential interest rate hike this year during his speech at Jackson Hole, citing ongoing inflation concerns.

In his remarks, titled 'In Our Time,' Warsh emphasized that summer inflation figures were 'better than expected' but not enough to indicate a significant improvement in underlying trends. 'While this summer's [inflation] readings were better than expected, they do not tell me that underlying trends have meaningfully improved.'

Warsh stressed the importance of seeing clear evidence that inflation is moving towards the Fed's 2% target at a sufficient speed. 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.'