In closely watched speech, Warsh signals Fed may need to raise rates
Any move to increase borrowing costs in September will likely invoke the frustration of President Donald Trump. Federal Reserve Chair Kevin Warsh attends a dinner at the Jackson Hole Economic Symposium in Jackson Hole, Wyoming, on Aug. 27, 2026. | Natalie Behring/Getty Images 08/28/2026 10:05 AM EDT | Updated: 08/28/2026 11:38 AM EDT JACKSON HOLE, Wyoming — Federal Reserve Chair Kevin Warsh on Friday laid the groundwork for a possible interest rate hike in the coming months, arguing that the economy is strong and the labor market is at full employment, while inflation is concerning. “Inflation is running above our 2 percent target. So the Fed’s predominant focus right now should be on prices,” Warsh said in remarks at the Fed’s annual conference in Grand Teton National Park. His words could help allay worries in financial markets, where global investors have been pushing up longer-term rates out of concern that elevated consumer prices will persist.
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Scoop News DeskJackson, Mississippi · Published Updated
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Markets are now judging that a rate hike next month is more likely than not, according to CME’s Fed Watch Tool. Treasury Secretary Scott Bessent over the past couple of weeks has made extraordinary moves to stem the run-up in bond yields, which also reflects fears that the U.S. will fail to rein in fiscal deficits and that massive borrowing by artificial intelligence businesses will put further upward pressure on rates.
