Fed Chair Warsh expressed concern about persistently high inflation in a speech at Jackson Hole. He suggested that there would be room for a rate hike if inflation was not brought under control, driving up market expectations of a September rate hike.
Fed Chair Warsh delivered a speech at Jackson Hole. He expressed concern about persistently high inflation and said that if inflation was not brought under control, “there is work to do.”
He said it was difficult to characterize current financial conditions as restrictive, suggesting that there was room for a rate hike. This drove up market expectations of a September rate hike.
US inflation has remained above 2% for an extended period, and he emphasized that the outlook for monetary policy would depend on economic conditions.