Fed Chair Warsh signals rate hikes may be needed as US inflation remains elevated

Federal Reserve Chair Kevin Warsh said Friday that inflation is still too high and suggested the central bank may have to raise interest rates in the coming months to bring it down, a clearer signal than he has previously sent about his economic outlook. In his first high-profile speech at the Fed’s annual conference in Jackson Hole, Wyoming, Warsh acknowledged that recent US reports show that inflation has cooled a bit, but “they do not tell me that underlying trends have meaningfully improved”.