Fed Chair Kevin Warsh said Friday that if policymakers cannot be confident inflation is falling to 2% “with sufficient clarity and speed,” the Fed “has more work to do,” signaling a possible rate hike if price pressures do not improve. Warsh reiterated his commitment to managing inflation via interest-rate adjustments, raising the odds of further tightening and creating potential policy friction with President Trump, who has pushed for cuts. His remarks removed prior ambiguity after a late‑July

Fed Chair Kevin Warsh said Friday that if policymakers cannot be confident inflation is falling to 2% “with sufficient clarity and speed,” the Fed “has more work to do,” signaling a possible rate hike if price pressures do not improve. Warsh reiterated his commitment to managing inflation via interest-rate adjustments, raising the odds of further tightening and creating potential policy friction with President Trump, who has pushed for cuts. His remarks removed prior ambiguity after a late‑July briefing where he had declined to say whether this year’s sharp rise in inflation — and inflation running above the Fed’s target for more than five years — required rate increases.