Warsh Vows Firm Action Against Inflation: 'No Excuses' for Failing to Meet Target

Kevin Warsh, president of the Federal Reserve of the United States, warned that the institution will take action if inflation does not move towards its 2% target. In a speech at the Jackson Hole symposium, Warsh emphasized the importance of bringing inflation back to its goal and stated that there are 'no excuses' for failing to achieve it.

Warsh's message was seen as a shift towards a more restrictive monetary policy stance, with investors increasing the probability of a rate hike from 35% to 57% after his speech. He acknowledged that recent inflation data has been better than expected but said it is still not enough to confirm a structural improvement.

The new Fed president defended the institution's credibility and commitment to price stability, stating that 'we must have the certainty that core inflation is heading towards our target, clearly and at a sufficient pace. Otherwise, we have work to do.'