Warsh's Jackson Hole Speech Puts Trump's Inflation Record Under Microscope

US Federal Reserve Chairman Kevin Warsh has opened the door to higher interest rates after his recent speech at the Jackson Hole conference in Wyoming. This move has put President Donald Trump's inflation record under scrutiny, with many analysts now seeing a roughly two-to-one chance of a quarter-percentage-point hike in the overnight policy rate.

The Fed's policymakers will meet on September 15-16 to discuss their next move. Warsh's speech at Jackson Hole was seen as a clarifying moment for the central bank, with him agreeing that higher rates may be needed to curb inflation stuck above the 2% target. However, he faces problems if the data for August does not line up well with his decision.

Trump has repeatedly expressed his desire for lower interest rates and has accused others at the Fed of being 'hostile' and 'political.' The president's approval rating is stuck at a low point in his career, and voters are reminded daily of his failure to deliver on promises to lower the cost of living.