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

Fed Will Have "Work to Do" If Inflation Doesn't Fade, Warsh Says in Jackson Hole Speech

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.