Warsh Warns of Rate Hikes to Tackle Stubborn Inflation

Fed Chair Kevin Warsh signaled that rate hikes may be needed to combat elevated inflation at his first high-profile speech at the Fed's annual conference in Jackson Hole, Wyoming.

Warsh acknowledged that recent U.S. reports show inflation has cooled a bit, but 'they do not tell me that underlying trends have meaningfully improved.'

The comments from the new Fed chair appeared to reassure Wall Street that fighting inflation remains the priority for the central bank.

Short-term yields on 2-year Treasuries moved up after Warsh's speech, indicating investors expect short-term yields to increase in response to potential rate hikes.