US Fed May Need to Raise Rates Amid Lingering Inflation

Federal Reserve Chairman Kevin Warsh has signaled that the US central bank may need to raise interest rates if policymakers are not confident that underlying inflation returns to its 2% target. Warsh made the remarks on Friday, acknowledging that financial conditions do not appear restrictive. He emphasized the need for confidence in inflation's return to target, stating that policymakers must be 'clearly and at a pace' confident in this regard. This marks the closest Warsh has come to acknowledging the possibility of interest rate hikes to ease price pressures.