Kevin Warsh used Jackson Hole to warn inflation may force the Fed back toward tighter policy.
Why it matters: Warsh is a former Fed governor, so his comments carry weight in the policy debate even though he is not a current decision-maker. Markets watch Jackson Hole closely for clues on whether the Fed sees more work ahead on inflation.
- Warsh spoke Aug. 28 at the Jackson Hole symposium in Moran, Wyoming.
- He said, "Inflation is still too high," and, "We have work to do."
- The BEA said July 2026 PCE inflation rose 3.7% from a year earlier.
- The BLS said July 2026 CPI-U rose 3.4% over 12 months.
Kevin Warsh used his Aug. 28 Jackson Hole keynote to argue that inflation still has not cooled enough for the Federal Reserve to relax. His remarks mattered because they came at one of the Fed's most closely watched annual gatherings, and because he is a former Fed governor whose views can shape how investors read the policy debate. Read the Fed speech
Warsh said, "Inflation is still too high," and added, "[The data] do not tell me that underlying trends have meaningfully improved." He also said, "We have work to do."
That warning landed alongside recent official inflation reports that still showed elevated price growth. The BEA said July 2026 PCE prices were up 3.7% from a year earlier, while the BLS said July CPI-U rose 3.4% over 12 months. See the PCE release and See the CPI release
Warsh did not say the Fed must raise rates immediately, but his message pushed against the idea that policymakers can declare victory over inflation. The speech adds to the broader debate over whether the central bank may still need tighter policy if price pressures stop easing. AP's report
By the numbers
- 3.7% - July 2026 PCE inflation increase from a year earlier, according to the BEA.
- 3.4% - July 2026 CPI-U increase over 12 months, according to the BLS.
Yes, but: Warsh framed the risk of tighter policy, but he did not explicitly say the Fed should raise rates now.