Federal Reserve chair delivers Jackson Hole speech on inflation and rate policy

Federal Reserve Chair Kevin Warsh spoke at a major economic conference on Friday. He said inflation is still too high and that the Fed remains committed to bringing prices down. Warsh warned that the central bank will have more work to do if inflation does not fall. He also repeated his view that the Fed should not give clear signals about future rate decisions, because this reduces flexibility. Markets read the speech as a sign that rate increases are more likely, especially in September. However, one analyst at J Safra Sarasin said the speech did not change his firm's plans, as they had already expected rate hikes in September and December. Some analysts noted that Warsh has sounded tough on inflation before without raising rates.