For a man who has thus far avoided delivering “future guidance” on Fed policy, Federal Reserve Chair Kevin Warsh offered some blunt talk about the future of interest rates during a speech at the Fed’s annual conference at Jackson Hole, Wyoming.
Warsh said inflation remains too high and said the central bank might have to raise interest rates in the forthcoming months to tame it, according to an article from the Associated Press.
The annual U.S. inflation rate stands at 3.4% for the 12-month period ending in July 2026, according to the U.S. Bureau of Labor Statistics. The Fed’s target rate for inflation is a 2% annual rate.
“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.”
With these comments, Warsh might be at odds with President Donald Trump, who nominated him for the Fed Chair post.
Trump was critical of Jerome Powell, Warsh’s predecessor, for being too slow to lower rates.
The full text of Warsh’s address is available here.
