Warsh Warns of Potential Rate Hikes to Tackle Elevated Inflation

Federal Reserve Chair Kevin Warsh signaled that interest rate hikes may be necessary to combat elevated inflation. In his first high-profile speech at the Fed's annual conference in Jackson Hole, Wyoming, Warsh acknowledged that recent US data show inflation has cooled slightly.

However, he stated that 'they do not tell me that underlying trends have meaningfully improved.' This suggests that the central bank may need to take action to bring down inflation, which is still too high according to Warsh.