Federal Reserve Chair Kevin Warsh said Friday that the central bank has more work to do if price increases do not ease for American consumers, according to BBC reporting.
Speaking at the annual Jackson Hole economic symposium in Wyoming, Warsh described inflation as "concerning" but declined to give a clear signal on the path for interest rates, CNN reports. He warned that the Fed would need to take further action if inflation does not fall soon, according to The Irish Times.
Warsh's remarks come as investors closely watch for any hints about the Fed's next policy move. CNBC reported that S&P 500 futures were little changed ahead of his address, suggesting markets were waiting for clarity rather than reacting to speculation.
The Fed has been battling elevated price pressures for over a year, with officials raising borrowing costs to cool demand. Warsh, who took over as chair earlier this year, has a reputation as a hawkish policymaker, meaning he tends to prioritize fighting inflation over supporting economic growth.
His latest comments reinforce that stance, signaling that the Fed is not ready to declare victory on prices. The Guardian noted in its business live coverage that Warsh's warning implies potential further rate hikes if the data does not improve.
The central bank's next policy meeting is scheduled for September, and economists will be parsing upcoming inflation reports for signs of progress. If price growth remains sticky, Warsh's "work to do" warning could translate into another rate increase before the end of the year.
What to watch next: The release of August consumer price data, which will likely determine whether the Fed moves again at its September meeting.
