Fed will have "work to do" if inflation doesn't fade, Warsh says

Fed chief Kevin Warsh said in a closely watched speech that inflation remains a concern, while praising the broader U.S. economy.

Warsh signals Fed may need to raise rates if above-target inflation persists  Reuters

The US central bank will “have work to do” if policymakers are not confident that underlying inflation is returning to its 2 per cent target, Federal Reserve Chairman Kevin Warsh said on Friday in remarks that acknowledged financial conditions do not appear restrictive and marked the closest he has come to acknowledgin

Federal Reserve Chair Kevin Warsh signaled on Friday the Federal Reserve is not ruling out an interest rate hike as inflation remains too high. “We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do,” Warsh said in a speech at the Fed’s

Fed chief says short-term interest rates are main policy tool

Inflation has worsened since the US and Israel attacked Iran, sending energy prices spiralling.

Fed’s Preferred Inflation Gauge Remains Above Target Range  WSJ

The main inflation gauge used by the Federal Reserve to set U.S. interest rates rose at a slightly elevated rate in July, leaving it an open question as to whether the central bank will raise interest rates next month.