Warsh Warns Policymakers Must Act on Soaring US Inflation

Federal Reserve Chairman Kevin Warsh warned policymakers at the Jackson Hole Economic Policy Symposium that they have 'work to do' if price rises don't ease for Americans. He emphasized that his remarks should not be taken as a guide for future interest rate decisions.

The latest inflation figures showed prices rose 3.4% in the year to July, above the Fed's 2% target. Warsh stated that given prices are rising by more than 2% on an annual basis, 'the Fed's predominant focus right now should be on prices.'

He stressed that his standard is that policymakers must be confident that underlying inflation is moving towards their objective at sufficient speed. If not, they will have work to do.