Warsh Warns Inflation Remains Stubbornly Elevated

Fed Chair Kevin Warsh signaled that interest rate hikes may be needed to combat stubbornly elevated inflation in the US. Speaking at the Fed's annual conference in Jackson Hole, Wyoming, Warsh acknowledged that recent reports show a slight cooling of inflation but emphasized that 'underlying trends have not meaningfully improved.'

'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,' Warsh said. 'Otherwise, we have work to do.' He pointed to data showing that inflation remains above the central bank's 2% target.

The comments reassured Wall Street that fighting inflation remains a priority for the Fed. However, Warsh did not imply that a rate hike is imminent and emphasized his skepticism about providing 'forward guidance' on future actions.