Warsh signals Fed could raise rates if inflation stays stubborn

Federal Reserve Chairman Kevin Warsh used a speech at Jackson Hole, Wyoming, to sharpen his warning on inflation and signal the Fed could still raise interest rates if price pressures do not ease. The speech marked a clearer and more hawkish message than his July news conference, when markets were left uncertain about his rate outlook. Warsh said bringing inflation back to the Fed's 2% goal remained the central bank's core task and pushed back on criticism of his earlier remarks. He also argued financial conditions were not broadly restrictive, a shift from his July characterization that they were uneven. The speech is likely to keep investors focused on whether the Fed is moving closer to tightening again.