Fed Will Have "Work to Do" If Inflation Doesn't Fade, Warsh Says in Jackson Hole Speech
Updated on: August 28, 2026 / 2:32 PM EDT / CBS News
TL;DR
- Fed Chairman Kevin Warsh reaffirmed the commitment to lowering consumer prices.
- Warsh acknowledged that inflation has cooled but stated underlying trends have not meaningfully improved.
- The Fed is prepared to act if inflationary pressures do not subside.
- Inflation remains above the Fed's 2% annual target despite easing in recent months.
- Analysts believe the Fed may raise interest rates later this year.
- Warsh expressed confidence in the overall performance of the economy, citing low unemployment.
- Warsh advocated for limiting forward guidance on future Fed policy decisions.
- The FedWatch tool indicated a 55% likelihood of a rate hike at the September meeting.