Fed's Warsh flags possible rate hikes as US inflation stays at 3.7%

Federal Reserve Chair Kevin Warsh signaled Friday that the central bank may need to raise interest rates in coming months because inflation remains too high, even after some recent cooling. Speaking at the Jackson Hole Economic Policy Symposium in Wyoming, Warsh said recent data did not show enough progress in underlying price trends to ensure inflation is moving back to the Fed's 2% goal. The Fed's preferred inflation measure stood at 3.7% in July. Warsh also pointed to broad price pressure, noting 54% of goods and services tracked by the government were still posting increases of 3% or more over the past year. He said inflation looked more troubling than the job market, where unemployment remains low, and argued current rates may not be restrictive enough to slow demand.