More U.S. rate hikes possible with inflation still elevated, Federal Reserve chair Kevin Warsh says

US Federal Reserve chair Kevin Warsh has stated that inflation in the country remains too high. According to Warsh, this may necessitate interest rate hikes in the coming months to bring inflation down.

Warsh's comments, made during a speech at Jackson Hole, have led to increased expectations of a possible rate hike in September. The Federal Reserve's goal of a 2% inflation rate has not yet been met, and Warsh emphasized that short-term interest rates will remain a key tool in achieving this target.

The dollar has risen following Warsh's remarks, which have been seen as hawkish by traders. Higher interest rates are typically negative for assets like gold, which fell by as much as 3.2% following Warsh's speech, according to Mining.com.

Brief written by urgent.news from CBC Business, Ventureburn, Mining.com, CBS News, Nasdaq Markets — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.