Warsh Warns Inflation Remains Elevated, Interest Rate Hike Possible

Federal Reserve Chair Kevin Warsh emphasized that inflation remains above the central bank's 2% target, and interest rates may need to be raised in the coming months.

In a speech at the Jackson Hole Economic Symposium, Warsh noted that the Personal Consumer Expenditures index currently stands at 3.7%, and comparable measures from the Consumer Price Index are also elevated.

He pointed out that 54% of goods and services in the CPE showed price increases above 3% over the last 12 months, and 49% did so over the last six months.

Warsh emphasized that the Fed's primary focus should be on prices and ensuring that inflation expectations do not become unanchored. He also warned that failing to keep inflation under control could have negative consequences for everyday Americans.