Warsh Warns Inflation Risks Remain Elevated Ahead of September Rate Hike

Federal Reserve Chairman Kevin Warsh warned at the Jackson Hole Economic Symposium that elevated inflation remains a concern and interest rates could rise if price pressures do not ease sufficiently.

Warsh said summer inflation readings were better than expected, but did not show underlying trends had 'meaningfully improved.'

The Fed must be confident that underlying inflation is moving to its objective 'clearly and at sufficient speed,' otherwise 'we have work to do,' Warsh emphasized.

He stated the economy appears to have strengthened, citing artificial intelligence as well as resilient business and consumer spending.