Warsh Warns Inflation May Demand Further Rate Hikes

Fed Chair Kevin Warsh has signaled that the US central bank may need to do more to contain inflation, arguing that recent improvements in price data have not provided enough evidence of a sustained slowdown.

In his first speech as Fed chair at the Kansas City Fed’s annual Jackson Hole symposium, Warsh emphasized that the central bank must be confident that underlying inflation is moving toward its 2% target at a sufficient pace. Without that confidence, he said, “we have work to do.”

Warsh stopped short of saying whether he would support a rate increase at the Fed’s September meeting, instead focusing on responding to incoming data rather than signaling specific policy decisions in advance.