The Journal. · Friday, September 4, 2026
Federal Reserve Chair Kevin Warsh has indicated that the central bank may need to raise interest rates further to bring inflation under control. This stance, emphasized at the Jackson Hole meeting, suggests that the Fed views inflation as an entrenched problem that will not resolve on its own.
“Warsh took the opportunity at Jackson Hole, really for the first time in his short 10-year tenure, to emphasize that the fight against inflation is not over yet, and the Fed might have to hike rates again and hike rates more in order to get it under control.”
“We must be confident that underlying inflation is moving to our objective. Clearly and at sufficient speed. Otherwise, we have work to do.”
“To hear that from the Fed chair, it really signaled that people should be on watch for rate hikes again, and also the central bank thinks inflation is a real entrenched problem that is not just going to fix itself.”