Warsh Warns of Potential Rate Hikes as Inflation Remains Elevated

Fed Chair Kevin Warsh signaled that rate hikes may be needed to combat stubbornly elevated US inflation at the annual Jackson Hole Economic Policy Symposium on August 28, 2026.

Warsh acknowledged that recent U.S. reports show a slight cooling of inflation, but stated that 'they do not tell me that underlying trends have meaningfully improved.'

He emphasized that the Fed must be confident that underlying inflation is moving towards its 2% target at sufficient speed, or else 'we have work to do.'

The new Fed chair's comments reassured Wall Street that fighting inflation remains the priority for the central bank.

Warsh pointed out that data show inflation remains above the central bank's target, with more than half of goods and services tracked by the government experiencing price increases of 3% or higher in the past year.