Fed will have "work to do" if inflation doesn't fade, Warsh says in Jackson Hole speech

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August 28, 2026 / 11:44 AM EDT

/ CBS News

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Federal Reserve Chairman Kevin Warsh reaffirmed the central bank's commitment to lowering consumer prices, acknowledging that inflation remains too high in a highly anticipated speech in Jackson Hole, Wyoming.During remarks at the Fed's annual conference, Warsh said that recent government data shows inflation has cooled, but "they do not tell me that underlying trends have meaningfully improved."While stopping short of saying the Fed could raise its benchmark interest rate, Warsh also signaled that policymakers are prepared to act if inflationary pressures don't subside. Inflation has eased in recent months after reaching a 3 -year high in April, but prices remain stubbornly above the Fed's 2% annual target."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."Although inflation remains hot, Warsh said he is "impressed by the overall performance of the economy," touting measures such as the nation's unemployment rate, which sat at 4.1% in July.Investors want guidance Warsh doesn't want to giveEconomists and Wall Street analysts have looked for a clear signal from Warsh on how he thinks the Fed should respond to stubborn inflation. The Fed chair, who succeeded Jerome Powell, has been significantly more tight-lipped than his predecessors.During the speech on Friday, Warsh again made the case for limiting forward guidance on future Fed policy decisions, which he has argued limits the central bank's flexibility by committing it to a specific policy path.