Warsh Warns Inflation Remains Too High at Jackson Hole

Federal Reserve Chairman Kevin Warsh sounded an alarm about inflation at the Jackson Hole Economic Symposium on Friday, stating that it remains 'too high' for comfort. The central bank's preferred inflation measure stands at 3.7% over the past 12 months, with a six-month change of 4.1%, significantly exceeding its 2% target. Despite stable labor markets and solid economic output, Warsh emphasized that policymakers must be confident underlying inflation is clearly moving toward their objective at sufficient speed.

The chairman noted that even though this summer's personal consumption expenditures and consumer prices index readings were better than expected, they do not indicate a meaningful improvement in underlying trends. He warned that if the condition of meeting the target is not met, the central bank still has work to do to achieve price stability.