Warsh Warns of Rate Hike as Fed Eyes Inflation Target

U.S. Federal Reserve Chairman Kevin Warsh made headlines Friday afternoon with a major announcement that put Wall Street on high alert.

Speaking at the central bank's symposium in Jackson Hole, Wyoming, Warsh signaled that interest rates may be headed for an increase if inflation persists above its target of two percent.

Warsh emphasized that short-term interest rates are the primary tool to achieve the dual mandate, implying that a rate hike is imminent if inflation continues to rise.