The Fed chief, Kevin Warsh, reiterates the message regarding inflation and suggests raising interest rates if inflation remains high.

The President of the Federal Reserve, Kevin Warsh, has adopted a firm tone regarding inflation, suggesting that the American central bank could raise interest rates if price pressures persist. At the Jackson Hole conference, Warsh reaffirmed the Fed's 2% inflation target, considering it a "firm and fixed" goal.

Inflation was 3.7% in July, and 54% of the components of the PCE index had an annualized inflation rate of over 3%. Warsh emphasized that short-term interest rates remain the Fed's main tool for achieving its objectives. His message is harsher than the one conveyed after the July meeting, when the interest rate was maintained at 3.5%-3.75%.

This position is a departure from President Trump, who calls for lower rates, making the next Fed meeting an important test for American monetary policy.