US Fed chair warns inflation progress is insufficient, hints at rate hikes
Federal Reserve Chair Kevin Warsh said at Jackson Hole that the central bank would have more work to do if it could not confirm underlying inflation was returning to its 2 percent target quickly enough. He said financial conditions did not appear restrictive enough, leaving open the possibility of rate hikes, while stressing he offered no timeline or forward guidance.
AAl JazeeraOriginal★★★☆☆2026-08-28 17:22
Warsh says Fed has ‘work to do’ if US price rises fail to easeFederal Reserve chair Kevin Warsh said summer inflation readings had improved less than expected but had not meaningfully changed the picture. He said the Fed must be confident underlying inflation is moving back to its 2% target quickly enough, otherwise it has “work to do”, suggesting rates could rise while stressing this was not forward guidance.
- Wall St muted after Fed Chair Warsh's speech; AI rally cools
Wall Street’s main indexes were subdued on Friday after Federal Reserve Chair Kevin Warsh reiterated his focus on returning inflation to the central bank’s 2% target. A rally fueled by artificial intelligence stocks in the previous session also faded.
