Warsh Warns US Inflation Still Too High, Leaves Door Open to Rate Hikes

Fed Chair Kevin Warsh emphasized that inflation remains too high and suggested that interest rates may need to be raised in the coming months to address it. This is a clearer signal than he had previously sent about his economic outlook.

In his speech at the Fed's annual conference at Jackson Hole, Wyoming, Warsh acknowledged that recent US data show inflation has cooled slightly but 'they do not tell me that underlying trends have meaningfully improved.'

'We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,' Warsh said. 'Otherwise, we have work to do.'