Warsh Warns: Inflation Concerns Spark Rate Hike Fears

US Federal Reserve Chair Kevin Warsh signaled concerns over inflation during his keynote speech at the Jackson Hole Economic Symposium, hinting that interest rates may be hiked to contain rising prices.

The recent US inflation rate has exceeded the Fed's target of 2%, prompting Chairman Warsh to state that if core inflation is not 'decisively contained,' the Fed will have no choice but to take action.

This implies that the Federal Reserve may pull out the card of a rate hike, despite having frozen interest rates for five consecutive times this year.

The markets reacted sensitively to Chairman Warsh's remarks, with US Treasury yields rising across the board and the US dollar strengthening.