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August 28, 2026

Fed Chair Kevin Warsh Reaffirms Commitment to 2% Inflation Target and Signals Possible Rate Hike

  • At Jackson Hole, Kevin Warsh stressed that elevated prices must remain the Fed's main focus, indicating a potential interest rate hike if inflation persists.
  • He reaffirmed the Fed's commitment to a 2% inflation target, stating that current inflation metrics show prices are still above this goal.
  • Warsh acknowledged past criticisms and clarified that short-term interest rates are the primary tool for achieving the Fed's dual mandate.

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