Warsh Warns of Possible Rate Hikes to Combat Elevated US Inflation

Federal Reserve Chair Kevin Warsh delivered a speech at the annual Jackson Hole Economic Policy Symposium on Friday, signaling that rate hikes may be needed to combat stubbornly elevated US inflation.

In his first high-profile address since taking over as Fed chair in late May, Warsh acknowledged that recent data shows inflation has cooled slightly, but emphasized that 'underlying trends have not meaningfully improved.'

Warsh stated that the central bank must be confident that underlying inflation is moving towards its 2% target at a sufficient pace. He warned that if this condition is not met, 'we have work to do.'

The Fed chair's comments were seen as reassuring for Wall Street, indicating that fighting inflation remains a top priority for the central bank.