Fed has 'work to do' if price rises don't ease for Americans, Warsh says
Federal Reserve Chair Kevin Warsh stated that the central bank must remain vigilant on inflation, signaling that interest rates could rise if price pressures do not ease. Speaking at the Jackson Hole symposium, Warsh emphasized that current inflation levels remain above the Fed's 2% target.
Why it matters
Monetary policy decisions by the Federal Reserve directly impact global markets, borrowing costs, and the economic outlook for American voters ahead of mid-term elections.
Image source, Getty Images By Michael Race Business reporter , Reporting from New York Published 28 August 2026 The head of the US central bank has said policymakers will "have work to do" if they were not confident cost-of-living pressures were easing for Americans.
Federal Reserve chair Kevin Warsh said while inflation readings looked better than expected over the summer, they did not show that the current picture had "meaningfully improved".
The new Fed boss stressed that his remarks should not be treated as a guide for future interest rate decisions, but the comments are a signal rates could be raised if policymakers believe inflation is too high.
Latest figures show prices rose 3.4% in the year to July, above the Fed's 2% target. Another inflation measure closely watched by the Fed is running at 3.7%.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in