Fed chair Warsh signals ‘work to do’ on high US inflation

Federal Reserve Chair Kevin Warsh signaled that there is still "work to do" on high inflation in the United States during a speech at a critical central banking meeting in Jackson Hole, Wyoming. The US central bank has been struggling to meet its 2% inflation target for over five years, with the latest measure of preferred inflation gauge coming in at 3.7% this week.

Warsh, who has been cautious about sharing his views on the economy since taking office, stressed that the central bank's primary focus should be on prices and ensuring that underlying inflation moves towards the target at a sufficient speed. He hinted that the central bank may need to take action to curb inflation, though he did not explicitly support an interest rate hike.

Warsh also noted that the US economy appears to have strengthened, citing metrics in business capital expenditures, corporate earnings, and consumer spending. He expressed particular interest in the performance of the economy, describing it as "impressed." The speech came amid growing calls for interest rate hikes to combat inflation, which has been fueled by US President Donald Trump's policies, including the US war on Iran and his tariff policies.