‘Numbers are more concerning’: US Fed chief Warsh breaks silence on economy, but still keeps markets guessing

Federal Reserve Chair Kevin Warsh addressed the US economy in his first public comments since taking office, saying high inflation was a "concerning" matter. The Fed chief, who has been reluctant to speak on economic issues since his appointment by President Trump, suggested that the central bank could consider rate hikes to curb inflation.

While the Federal Reserve has not raised interest rates in 2026, a faction of policymakers has pushed for action to combat inflation caused by Trump's Iran war and tariff policies. Warsh praised the overall economic performance, highlighting improvements in business capital expenditures, corporate earnings, and consumer spending.

However, he remained cautious about the impact of artificial intelligence on the economy, describing the current moment as a "hinge point in history". The Fed chair's speech did not mention the central bank's independence, which has come under attack by the Trump administration. Analysts welcomed Warsh's speech as providing much-needed insight into his views, but warned that his stance on less transparent decision-making could lead to more market uncertainty.