Warsh Vows to Tackle High Inflation, Cites Strains in Economy

Fed Chairman Kevin Warsh has signaled his commitment to fighting inflation, stating that 'we have work to do' in bringing down prices. In a speech at the Fed's annual conference in Jackson Hole, Wyoming, on August 28, 2026, Warsh expressed concern about persistently high inflation, which has been above the Fed's 2% target for more than five years.

Inflation eased slightly in July, but has spiked recently due to higher oil prices from the Middle East crisis. Warsh emphasized that the Fed's predominant focus should be on prices, and he pointed out that certain sectors of the economy, such as housing and agriculture, 'are showing strains.'

Warsh noted that artificial intelligence is reshaping the economy, with over half of capital expenditure growth this year attributed to AI. He also stated that the Fed has work to do in achieving its inflation objective.