Warsh's Jackson Hole warning lifts odds of a Fed rate hike

Federal Reserve Chair Kevin Warsh struck a hawkish tone at Jackson Hole on Friday, warning that inflation remains too high and that policymakers still have "work to do" if they are not confident price pressures are easing. Warsh pointed to annual inflation readings of 3.4% by the consumer price index and 3.7% on the Fed's preferred measure, both above the central bank's 2% target. He avoided giving explicit guidance on the next move, but investors read the remarks as opening the door to a rate increase at the Sept. 15-16 meeting. Warsh also argued the Fed should communicate less about future decisions, saying too much advance signaling can mislead markets, businesses and households.