Federal Reserve Chairman Kevin Warsh reaffirmed the central bank's commitment to lowering consumer prices, acknowledging that inflation remains too high in a highly anticipated speech in Jackson Hole, Wyoming.
During remarks at the Fed's annual conference, Warsh said that recent government data shows inflation has cooled, but "they do not tell me that underlying trends have meaningfully improved."
While stopping short of saying the Fed could raise its benchmark interest rate, Warsh also signaled that policymakers are prepared to act if inflationary pressures don't subside. Inflation has eased in recent months after reaching a 3 -year high in May, but prices remain stubbornly above the Fed's 2% annual target.
"We must be confident that underlying inflation is moving to our objective clearly and at sufficient speed," Warsh said. "Otherwise, we have work to do."
Although inflation remains hot, Warsh said he is "impressed by the overall performance of the economy," touting measures such as the nation's unemployment rate, which sat at 4.1% in July.
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During remarks at the Fed's annual conference, Warsh said that recent government data shows inflation has cooled, but "they do not tell me that underlying trends have meaningfully improved."
While stopping short of saying the Fed could raise its benchmark interest rate, Warsh also signaled that policymakers are prepared to act if inflationary pressures don't subside. Inflation has eased in recent months after reaching a 3 -year high in May, but prices remain stubbornly above the Fed's 2% annual target.
"We must be confident that underlying inflation is moving to our objective clearly and at sufficient speed," Warsh said. "Otherwise, we have work to do."
Although inflation remains hot, Warsh said he is "impressed by the overall performance of the economy," touting measures such as the nation's unemployment rate, which sat at 4.1% in July.
#recent
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