Fed's Warsh Warns Inflation Still Running Hot, Leaves Door Open To Hike
At Jackson Hole, Warsh cited PCE inflation at 3.7% annually and 4.1% over six months, calling two years of progress modest.
- PCE basket shows 54% of components rising above 3% over the past year.
- Unemployment holds at 4.1% while business investment grows roughly 9% this year.
- Warsh said without inflation moving 'clearly and at sufficient speed,' the Fed has 'work to do.'
Why it matters: Two years of promised progress left inflation at nearly double the target rate, a gap no speech closes.
Federal Reserve Board — Chairman Kevin Warsh, "In Our Time" (Jackson Hole keynote) ↗ · Aug 28, 20268/28/26