Fed Chair Warsh Signals Rate Hikes

Federal Reserve Chair Kevin Warsh signaled at the Fed’s annual Jackson Hole symposium that interest-rate increases may be needed in coming months because inflation remains above target. Warsh said policymakers must be confident underlying inflation is moving toward the Fed’s 2% objective “clearly and at sufficient speed,” adding, “Otherwise, we have work to do.” Inflation has been above the Fed’s 2% target for 65 months, while a key inflation gauge remains elevated. His remarks raised expectations for a September rate hike and eased investor concerns that the Fed might hold off.