Warsh Warns of Higher Rates Ahead to Tame Stubborn Inflation

Federal Reserve Chair Kevin Warsh addressed the central bank's annual conference in Jackson Hole, Wyoming, and stated that inflation remains too high. He suggested that interest rates may need to be raised in the coming months to bring down inflation.

Warsh acknowledged that recent US reports show a slight cooling of inflation, but noted that 'they do not tell me that underlying trends have meaningfully improved.' He emphasized the importance of ensuring that underlying inflation is moving towards the central bank's 2% target at sufficient speed.

The comments from Warsh appeared to reassure Wall Street that fighting inflation remains a priority for the Fed. However, he did not imply that a rate hike is imminent, and instead seemed to dismiss perceptions that inflation is no longer a threat.