Warsh Warns of 'Concerning' Inflation Ahead of Jackson Hole Meeting

US Federal Reserve chair Kevin Warsh spoke about his economic outlook at a key central banking meeting in Jackson Hole, Wyoming. He stated that high inflation in the world's largest economy is 'concerning' and hinted that the central bank may need to act to curb it.

Warsh said he would be 'hard pressed' to describe current financial conditions as 'restrictive,' a potential hint that interest rate hikes could be on the horizon. However, he stopped short of saying he would support a hike.

The US central bank has missed its long-term two-per-cent target for inflation for more than five years, with the latest measure of the Fed's preferred gauge coming in at 3.7 per cent this week.

Warsh emphasized that the central bank's 'predominant focus right now should be on prices.' He noted that underlying inflation trends have not'meaningly improved' and that the Fed must ensure that inflation is moving towards its objective, clearly and at sufficient speed.