Fed Chair Warsh warns inflation may require higher rates

Federal Reserve Chair Kevin Warsh delivered a hawkish message on inflation Friday, warning that recent improvements in price data are not yet sufficient to convince policymakers that inflation is on a sustainable path back to the central bank's 2 percent target. Speaking at the Federal Reserve Bank of Kansas City's annual economic symposium in Jackson Hole, Wyoming, Warsh emphasized that the Fed's predominant focus must remain on prices and that interest rates could need to stay higher for longer, or even be raised, if inflation does not cool more decisively.