Fed Eyes Rising Prices: Warsh Urges More Action if Inflation Persists
During his first address as Federal Reserve chair at the Jackson Hole Economic Symposium, Kevin Warsh warned that inflation has not meaningfully eased and that policymakers will have work to do if prices remain above the target.
Data released to date show the Consumer Price Index rose 3.4% in the year to July – well above the Fed’s 2% goal – and the core PCE runs at 3.7%, underscoring persistent price pressure.
Higher oil prices have also pushed borrowing costs for the Treasury and major corporations upward, contributing to an increase in the US national debt that has surpassed $40 trillion.
Warsh’s comments come against a backdrop of political pressure from President Donald Trump, who has repeatedly urged the Fed to reduce rates, and the looming 2026 mid‑term elections where voters are concerned about affordability.
He stated that the practice of issuing forward guidance is now over‑stretched, arguing that oversharing policy deliberations can misguide markets and inhibit the Fed’s ability to make timely decisions.
