‘We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,’ the Fed Chairman Kevin Warsh said.
Federal Reserve Chairman Kevin Warsh is cautious about elevated underlying inflation trends, teasing that higher interest rates could be on the table in the coming months.
In his keynote address at the Federal Reserve’s Jackson Hole Economic Symposium on Aug. 28, Warsh said headline inflation readings over the summer have come in better than expected, though underlying pressures remain a concern.
“They do not tell me that underlying trends have meaningfully improved,” Warsh stated in his prepared remarks.
It is the Federal Reserve’s responsibility to ensure inflation returns to 2 percent after “65 months of sustained, elevated” prices, he said.
“Here is my standard: We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,” Warsh said. “Otherwise, we have work to do. That’s our job … our mandate … and our charge to keep.”
This is a developing story. Please check back for further updates.
By Andrew Moran
