Summary
Federal Reserve Chairman Kevin Warsh said the Fed is ready to act if inflation does not continue to go down. He noted that inflation is still above the Fed's 2% target and the economy shows mixed signs, with a steady unemployment rate.Key Facts
- Chairman Kevin Warsh spoke at the Fed’s annual conference in Jackson Hole, Wyoming.
- Inflation has cooled recently but remains higher than the Fed’s 2% goal.
- Warsh did not clearly say if the Fed will raise interest rates but hinted they are prepared to do so if needed.
- The economy’s unemployment rate was 4.1% in July.
- Warsh prefers less forward guidance (predicting future Fed moves) to keep the Fed flexible.
- He believes forward guidance, started during the 2008 financial crisis, is no longer as helpful.
- Other Fed officials have shown openness to raising rates soon.
- The CME Group’s FedWatch tool showed a 55% chance the Fed would raise rates in September.
