Warsh Warns of Persistently High Inflation Ahead of Key Rate Decision

Federal Reserve Chairman Kevin Warsh has expressed concern about high inflation in the United States. In his speech to central bankers at the annual central bank meeting in Jackson Hole, he emphasized the need for a strong response to combat persistently high inflation.

Despite recent interest rate hikes, Warsh noted that financing conditions are not restrictive and that the economy is still growing. However, he stated that he is more concerned about inflation than the labor market, which suggests that the Fed may consider another rate hike at its next meeting in mid-September.

LBBW expert Elmar Völker agrees with Warsh's assessment, stating that an interest rate hike in September is a serious possibility. The upcoming U.S. inflation data for August will be crucial in determining the Fed's decision.