US Federal Reserve Chair Kevin Warsh’s comments reassured investors that fighting inflation remains the Fed’s main priority.
US Federal Reserve Chairman Kevin Warsh holds a press conference following a two-day meeting of the Federal Open Market Committee (FOMC), Washington, DC, US, Jul 29, 2026. (Photo: REUTERS/Evelyn Hockstein)
29 Aug 2026 02:07AM
JACKSON HOLE, Wyoming: Federal Reserve Chair Kevin Warsh said Friday (Aug 28) that inflation is still too high and suggested the central bank may have to raise interest rates in the coming months to bring it down, a clearer signal than he had sent previously about his economic outlook.In his first high-profile speech at the Fed’s annual conference in Jackson Hole, Wyoming, Warsh acknowledged that recent US reports show that inflation has cooled a bit, 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.”Comments from the new Fed chair appeared to reassure Wall Street that fighting inflation remains the priority for the central bank. Warsh did not imply that a rate hike is imminent, but he appeared to dismiss perceptions that inflation is no longer a threat.
