interest rate<\/a> hikes may be needed to ease price pressures.<\/p>\nRecommended Stories list of 4 itemsend of list<\/p>\n
\u201cHere is my standard: We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed,\u201d Warsh said in an address at the Federal Reserve\u2019s Jackson Hole economic symposium in the US state of Wyoming.<\/p>\n
Warsh did not suggest a timeline for rate hikes and stressed that his comments should not be taken as \u201cforward guidance\u201d.<\/p>\n
However, it is becoming increasingly probable that a rate hike could be on the way. CME Group\u2019s FedWatch, which tracks the likelihood of monetary policy decisions, shows a 57.4 percent chance that the central bank will raise rates by 25 basis points at its next meeting in mid-September.<\/p>\n
\u201cShort-term interest rates are the predominant tool to achieve the dual mandate,\u201d Warsh said in his remarks on Friday.<\/p>\n
\u201cIt\u2019s the Fed\u2019s job to make sure that inflation expectations do not get unanchored.\u201d<\/p>\n
Warsh also addressed the Personal Consumption Expenditures Price Index (PCE), the central bank\u2019s preferred metric for gauging the rate of inflation, which remained at 3.7 percent on an annual basis as of July.<\/p>\n
\u201cProgress over the past two years has been modest,\u201d Warsh said. He added that the data does \u201cnot tell me that underlying trends have meaningfully improved\u201d.<\/p>\n
He stressed that inflation shown in the PCE report has been increasing by 3 percent, which is well above pre-pandemic levels.<\/p>\n
Warsh\u2019s speech \u201cdelivered a far clearer \u2013 and hawkish \u2013 message than his last press conference appearance,\u201d Capital Economics analysts wrote in a note to clients. \u201cThat leaves the door open to a hike earlier than our current forecast of December, if the forthcoming price data are firm.\u201d<\/p>\n
While Warsh addressed the more immediate pressures on interest rates, much of his address was focused on big-picture issues, such as the role that artificial intelligence will have on the economy.<\/p>\n
He said the recommendations from the five task forces the central bank created will come later and will address \u201cfuture policy challenges\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"In a closely watched speech in Jackson Hole, Kevin Warsh underscores US Fed\u2019s commitment to tackling inflation, with…\n","protected":false},"author":2,"featured_media":1174543,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[5311],"tags":[331,12633,1700,476,12,285,49,978,286,659],"class_list":["post-1174542","post","type-post","status-publish","format-standard","has-post-thumbnail","category-united-states","tag-banks","tag-business-and-economy","tag-economy","tag-inflation","tag-news","tag-politics","tag-united-states","tag-us","tag-us-canada","tag-usa"],"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1174542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=1174542"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/1174542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/1174543"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=1174542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=1174542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=1174542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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