{"id":357752,"date":"2026-08-28T11:06:18","date_gmt":"2026-08-28T16:06:18","guid":{"rendered":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/feds-warsh-we-have-work-to-do-on-inflation"},"modified":"2026-08-28T11:06:22","modified_gmt":"2026-08-28T16:06:22","slug":"feds-warsh-we-have-work-to-do-on-inflation","status":"publish","type":"post","link":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/feds-warsh-we-have-work-to-do-on-inflation","title":{"rendered":"Fed’s Warsh: ‘We’ve got work to do’ on inflation"},"content":{"rendered":"


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In a highly-anticipated speech Friday morning, Federal Reserve Chairman Kevin Warsh voiced concern about persistently high inflation, saying the central bank should focus on bringing down prices — but stopped short of explicitly calling for an interest rate hike.<\/p>\n

“We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do,” Warsh said in remarks prepared for delivery at the Fed\u2019s annual conference in Jackson Hole, Wyoming.<\/p>\n

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Federal Reserve Chairman Kevin Warsh arrives at the Jackson Hole Economic Symposium August 27, 2026 in Jackson Hole, Wyoming.<\/span><\/span><\/span><\/p>\n

Natalie Behring\/Getty Images<\/span><\/p>\n<\/div>\n<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n

The remarks signaled a strong commitment by the newly-installed Fed chair to fight inflation.<\/p>\n

Inflation\u00a0eased<\/a>\u00a0slightly in July, the most recent month on record,\u00a0but has spiked in recent months fueled by higher oil prices\u00a0from the Middle East crisis.\u00a0Overall\u00a0prices have been increasing at a pace above the Fed\u2019s 2% target for more than five years, which Warsh said is a responsibility that lies “squarely” with the central bank.<\/p>\n

“The Fed\u2019s predominant focus right now should be on prices,” said Warsh, who is in his third month in the role\u00a0after replacing Jerome Powell<\/a>.<\/p>\n

Typically the Fed hikes interest rates to tame high prices. Warsh did not directly comment on the central bank’s interest rate plans, noting the practice of \u201cforward guidance\u201d — where the Fed telegraphs its next moves in advance — “should be limited” and “has overstayed its welcome.”<\/p>\n

President Donald Trump has repeatedly called on the Fed to cut interest rates.<\/p>\n

Investors are now pricing in a roughly 35% chance the Fed increases its key borrowing rate by the end of this year, according to\u00a0CME FedWatch<\/a>.<\/p>\n

“We believe that markets heard what they needed to hear to believe that Warsh will tighten monetary conditions to restrain inflation, and that he will encourage the FOMC to pull the trigger soon,” said Carl Weinberg, chief economist at High Frequency Economics, in a research note after Warsh’s speech.<\/p>\n

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Federal Reserve Chairman Kevin Warsh holds a press conference following a two-day meeting of the Federal Open Market Committee at the Federal Reserve, in Washington, July 29, 2026.<\/span><\/span><\/span><\/p>\n

Evelyn Hockstein\/Reuters<\/span><\/p>\n<\/div>\n<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n

Warsh said Friday that he is “impressed by the overall performance of the economy, which appears to have strengthened.” He pointed to solid consumer spending and a steady job market. But Warsh noted that certain sectors of the economy like housing and agriculture “are showing strains.”<\/p>\n

He also detailed how artificial intelligence is reshaping the economy, with more than\u00a0half of capital expenditure growth this year so far attributed to the buildout of AI.<\/p>\n

“We\u2019ve come to a hinge point in history,” Warsh said.<\/p>\n<\/div>\n


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