Fed chair warns inflation battle ongoing, pledges action toward 2% target

Federal Reserve Chair Kevin Warsh has stated that the central bank's fight against inflation is not yet over, noting that recent inflation data show no significant improvement. He affirmed that the Fed will continue to take action to ensure inflation returns to its 2% target.

Speaking at the Jackson Hole economic symposium, Warsh said inflation "is not slowing," reaffirming the Federal Reserve's commitment to bringing it back to 2%. He added that the bank would take further measures if inflation does not move toward this level quickly enough.

Warsh explained that inflation expectations appear generally stable in the medium term, but emphasized that the latest inflation figures do not indicate any tangible progress.

He stressed that the Federal Reserve should focus on price stability, pointing out that the potential for higher economic growth "remains strong" as business investment rises rapidly.

Warsh underscored the need to ensure inflation expectations do not spiral out of control, noting that while curbing inflation may sound simple in speeches, it is much harder to achieve in practice.