Fed Has Work To Do If Price Rises Do Not Ease, Warsh Says

Federal Reserve chair Kevin Warsh said policymakers will have “work to do” if they are not confident cost-of-living pressures are easing for Americans, according to BBC. In his first speech at the Jackson Hole Economic Policy Symposium in Wyoming, Warsh said summer inflation readings looked better than expected but had not “meaningfully improved,” and he stressed the Fed’s focus should be on prices. Warsh said inflation was still running above the Fed’s 2% target, with the latest figures showing prices rose 3.4% in the year to July. He also said his remarks should not be treated as forward guidance on future rate decisions, though he warned that oversharing policy deliberations can mislead markets and households. The Fed’s next interest rate decision is due on 15-16 September. The central bank left rates unchanged at 3.5% to 3.75% in July for the fifth straight meeting.