Fed Chair Kevin Warsh at Jackson Hole: 'We have work to do' on inflation - CoinDesk

**Federal Reserve Veteran Kevin Warsh Warns Inflation Remains “Stubbornly Elevated” at Jackson Hole**

*Jackson Hole, Wyoming –* Former Federal Reserve Governor Kevin Warsh, a longtime advocate of tighter monetary policy, delivered his annual remarks at the Federal Reserve’s Jackson Hole Economic Symposium on Tuesday. While the event’s headline material typically features the sitting Fed chair, Warsh’s speech has drawn attention because he framed the current inflation outlook as “still work to do” and hinted that further interest‑rate hikes could be on the table if price pressures do not recede. Warsh, who served on the Board of Governors from 2006 to 2009, said the central bank must remain vigilant, noting that core‑PCE inflation has lingered above the 2 percent target for eight consecutive months.

In his address, Warsh highlighted recent data showing that consumer‑price growth, while easing slightly from its 2022 peak, remains “stubbornly elevated” in services and wages. He cautioned that the Fed’s earlier decision to pause rate hikes last month was a “temporary reprieve” rather than a signal of a prolonged easing cycle. “If the inflation trajectory does not shift decisively toward the 2 percent goal, we will have to consider additional tightening to anchor expectations,” he said, echoing language often used by policymakers during periods of persistent price pressure. Warsh also underscored the importance of the Fed’s “dual‑mandate” balance, warning that a premature retreat could jeopardize employment gains built over the past year.

Financial markets responded with a mix of caution and optimism. The S&P 500 edged higher for the week, while the U.S. dollar index steadied after a brief rally, and Treasury yields slipped marginally as investors priced in the possibility of a limited rate‑hike window later in the year. Analysts at Kitco noted that Warsh’s comments “reinforced the narrative that the Fed is not ruling out tightening, keeping the bond market on its toes.” Meanwhile, equity strategists cited the remarks as a reminder that inflation risks remain a key variable in the pricing of growth stocks. The Jackson Hole symposium will continue through Thursday, with the Federal Reserve Chair expected to give a separate, more definitive assessment of policy direction.