Jackson Hole LIVE: Warsh Keeps Doors Open For Fed Rate Hike — 'Work To Do If Inflation Above 2%'

“Let’s be equally clear about another aspect of the objective: Price stability is not self-executing, nor is inflation necessarily mean-reverting. It is the Fed’s job to deliver stable prices,” he said.
 

Warsh said inflation remains a key concern, with both PCE and CPI measures running above the Fed’s 2% target. He added that while no single measure is perfect, the data broadly point to persistent price pressures, making inflation the Fed’s predominant focus for now.
He said,  "None of these measures are perfect, but they all tell a similar story: Inflation is running above our 2 percent target. So the Fed's predominant focus right now should be on prices."

Highlighting the employment scenario o f the US, Warsh said, Labour markets are quite stable. The jobless rate, at 4.1 percent, 'remains low by historical standards and has not changed much for a couple of years. Unemployment claims, on a four-week average—an empirically robust real-time indicator—are near their lowest level in decades."

He added, "the relatively low turnover in today's labour market is partly a result of the significant rematching between employers and employees that happened at scale in the post-pandemic environment."

Fed Chair keeps rate hike option open if inflation stays above 2%. He said, "We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That's our job, our mandate and our charge to keep."

Warsh said market participants should closely track inflation and economic developments, noting that the Fed plays an essential role in financial markets. He also stressed the need for a more precise understanding of the economy.
 

 Warsh said the central bank’s primary focus at present should be on prices, while noting that the potential for substantial economic growth is increasing.
 

Treasury yields flattened after Warsh’s comments on inflation, as he said recent data did not show a meaningful improvement in the inflation trend.
 

Warsh said the central bank’s 2% PCE inflation objective remains a firm and fixed target, adding that policymakers still have work to do if inflation is not moving toward the 2% goal at a sufficient pace.
 

Federal Reserve Chair Kevin Warsh has begun his closely watched address at the Jackson Hole symposium

Markets will look for possibility hints for a rate hike in September. The Fed has kept its benchmark rate in the 3.50%-3.75% range since December, but the case for another increase has gained traction as inflation remains well above the central bank's 2% target.

Investors will majorly focus on Fed Chair's statement on inflation as the personal consumption expenditures price index, the Fed's preferred inflation gauge, rose 3.7% in July from a year earlier, remaining significantly above the Fed's 2% objective.

Fed Chair Kevin Warsh will deliver his keynote speech at Jackson Hole on Friday, August 28, 2026, at 10:00 am EDT or 7:30 pm IST.