Warsh Warns Inflation Fight Not Over as Markets Eye Rate Hikes

US Federal Reserve Chair Kevin Warsh has warned that inflation remains a persistent concern for the central bank, despite recent signs of moderation. Speaking at the Fed's annual symposium in Jackson Hole, Wyoming, Warsh emphasized the importance of delivering stable prices and stated that the fight against inflation is not over yet.

Warsh did not provide any clear signals on interest rates, but investors interpreted his comments as a sign that policymakers could keep rates higher for longer or potentially raise them if inflation remains persistent. The Fed's next rate decision will come against a backdrop of persistent inflation, with US inflation reaching a three-year high of 4.2% in May before easing to 3.4% in July.

The comments from Warsh could put him at odds with President Donald Trump, who has repeatedly pushed the Federal Reserve to lower borrowing costs. Despite this, Warsh offered a relatively positive assessment of the US economy, stating that it appears to have strengthened despite a series of economic shocks.