Federal Reserve Chairman Kevin Warsh on Friday expressed concerns about inflation running hot, while maintaining his advocacy for a “quieter” central bank.In his inaugural Jackson Hole keynote address as Fed chair, Mr Warsh said that although recent inflation measures were better than expected, “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. Otherwise, we have work to do. That's our job,” he said.During his remarks, Mr Warsh did not provide forward guidance, a communication tool the Fed uses to signal to markets the potential future path for monetary policy. However, he said some sectors such as housing and agriculture are showing strains, noting that he would be “hard pressed to describe broad financial conditions as restrictive”.Markets took Mr Warsh's remarks to suggest that the Fed might not be done fighting inflation. The two-year Treasury yield, which closely follows Fed decisions, jumped more than 8 basis points to 4.317 per cent during his speech.Bond markets entered Friday’s address spooked, with the continuing Iran war fuelling inflation fears while the US national debt topped $40 trillion for the first time. Treasury Secretary Scott Bessent last week attempted to steady some of those jitters by announcing plans to at least double the size of the department’s buyback programme from $2 billion to $4 billion.Yields on the 10-year Treasury moved roughly 2 basis points higher during Mr Warsh's remarks, while the 30-year Treasury fell roughly 2 basis points. Mr Warsh did not mention the Treasury Department's accelerated buyback programme.Data released last week showed PCE inflation holding firm in June, rising 3.7 per cent on an annual basis. Core inflation, which strips away food and energy, rose 3.3 per cent year-on-year, in line with expectations.Minutes from the Federal Reserve's July meeting showed officials were growing increasingly cautious about inflation. The Fed at the time held rates steady at about 3.6 per cent in a 9-3 vote. (The UAE Central Bank, which follows Fed decisions because of the country’s currency peg, also left rates unchanged.)Other US central bankers expressed hawkish sentiment this week. Regional Fed presidents Jeffrey Schmid and Beth Hammack recently advocated for rate increases, while Boston Fed President Susan Collins told the Wall Street Journal she would support action if inflation does not moderate at her preferred speed.Warsh pushes for quieter FedJackson Hole is a tent-pole event on the Federal Reserve’s calendar, with the chair’s keynote address typically seen as an opportunity to reset the direction of monetary policy. Mr Warsh’s predecessor, Jerome Powell, used it in 2022 to preview higher-for-longer interest rates, while Janet Yellen in 2014 cautioned against the post-recession labour market recovery.Mr Warsh doubled down on his quieter-Fed mantra in his inaugural address. The former Fed governor has long advocated that excessive Fed communication injects uncertainty into financial markets.“The Fed plays an essential role in the economy and the markets. And our tools are powerful,” he said. “We determine the path of short-term interest rates. And market participants will always try to anticipate what we will do next. But we should not indulge a regime in which market participants are looking primarily to the Fed for their next trade.”He also maintained his commitment to the Fed's long-term 2 per cent inflation target.“There should be no misunderstanding: The Fed's price-stability objective of 2 per cent, as measured by the personal consumption expenditures (PCE) price index, is a firm, fixed target,” he said.