US Federal Reserve’s Kevin Warsh warns there will be ‘work to do’ unless high inflation eases – as it happened
News Source
•Fri, 28 Aug 2026 16:02:48 GMT
📰 What Happened
US Federal Reserve chair Kevin Warsh warned there would be “work to do” unless high inflation eases, in a speech at the Jackson Hole economic symposium. Markets responded by pricing in a 55% chance of a September rate hike. Analysts said Warsh cleared the way for an early rate increase.
His speech set out six principles for running the Fed, and he argued that forward guidance — the Fed’s habit of telling markets what it will do — has overstayed its welcome. Elsewhere on the day: UK petrol prices hit their highest in almost four years, Asda returned to growth, and Venezuela is considering quitting OPEC.
🔍 The Backstory
Jackson Hole is the Fed’s annual summer conference in Wyoming, where chairs traditionally signal where policy is heading. This was Warsh’s first major speech since taking the job.
Inflation has stayed stubbornly above the Fed’s 2% target, partly because of the war in Iran and its effect on energy prices. Meanwhile President Trump has loudly demanded rate cuts, putting him at odds with his own Fed chair. A rate hike would widen that fight and change the cost of borrowing everywhere.
🎯 Why It Matters
If the Fed raises rates, loans, mortgages, and credit cards all get more expensive. The Fed’s next move decides how much families pay to borrow and how far their savings will stretch.
US Federal Reserve chair Kevin Warsh warned there would be “work to do” unless high inflation eases, in a speech at the Jackson Hole economic symposium. Markets responded by pricing in a 55% chance of a September rate hike. Analysts said Warsh cleared the way for an early rate increase.
His speech set out six principles for running the Fed, and he argued that forward guidance — the Fed’s habit of telling markets what it will do — has overstayed its welcome. Elsewhere on the day: UK petrol prices hit their highest in almost four years, Asda returned to growth, and Venezuela is considering quitting OPEC.
Jackson Hole is the Fed’s annual summer conference in Wyoming, where chairs traditionally signal where policy is heading. This was Warsh’s first major speech since taking the job.
Inflation has stayed stubbornly above the Fed’s 2% target, partly because of the war in Iran and its effect on energy prices. Meanwhile President Trump has loudly demanded rate cuts, putting him at odds with his own Fed chair. A rate hike would widen that fight and change the cost of borrowing everywhere.
If the Fed raises rates, loans, mortgages, and credit cards all get more expensive. The Fed’s next move decides how much families pay to borrow and how far their savings will stretch.