Warsh Warns of Higher Interest Rates Amid Inflation Concerns
Federal Reserve Chairman Kevin Warsh expressed concern about high inflation during his highly anticipated speech at the annual Jackson Hole Economic Policy Symposium on August 28, 2026. He stated that until they are confident that inflation is moving toward their 2% target rate 'clearly and at a sufficient speed,' they 'have work to do.'
The market reacted quickly to Warsh's hawkish remarks, erasing daily gains and nearly doubling the probability of an interest rate hike at the Fed's next meeting in mid-September. According to CME FedWatch, as of Friday afternoon, the market saw a 57% chance of a quarter-point increase.
This development puts Warsh at odds with President Donald Trump, who has been brushing off concerns about inflation and insisting that prices under his administration have fallen. Trump exerted pressure on former Fed Chair Jerome Powell to cut interest rates, but when Warsh was sworn in less than 100 days ago, Trump said he wanted him 'to be totally independent.'