Warsh Warns Inflation Remains Elevated, Fed Has Work to Do
Kevin Warsh, Federal Reserve Chairman, marked his 100th day in office by stating that inflation remains too high and the Fed has 'work to do' at an economic policy symposium in Jackson Hole, Wyoming.
Warsh emphasized that the Fed's predominant focus should be on prices, as inflation is currently running above the 2% target. The FOMC's preferred measure showed an annual PCE price index of 3.7 and a six-month rate of 4.1.
The unemployment rate remains at 4.1%, and job gains have slowed. However, consumer spending has increased more than 2% over the past four quarters, indicating stability in the labor market.
Warsh also discussed the Fed's role with 'forward guidance,' stating that it should be limited to avoid leading markets, businesses, and households astray.