Fed chair says inflation fight is unfinished as markets weigh rate outlook

Federal Reserve chair Kevin Warsh said on August 28, 2026 that the US central bank’s work against inflation is not finished, while declining to signal whether policymakers will change interest rates in the coming months.

In his first major speech as chair, delivered at the Fed’s annual Jackson Hole symposium in Wyoming, Warsh said progress in bringing inflation down had been modest and that recent better readings did not show a meaningful improvement in underlying trends. He also said the economy appeared to have strengthened despite recent shocks.

Warsh said the Fed should move away from the routine “forward guidance” adopted during the 2008 financial crisis. The remarks left investors to infer the policy direction rather than providing an explicit commitment. Treasury yields moved slightly after the opening comments, while major US stock indexes showed limited initial movement.

At the Fed’s July meeting, the majority voted to keep the policy rate in a range of 3.5% to 3.75%, while three of 12 voting members supported a quarter-point increase. US inflation was reported at 3.4% in July, down from 4.2% in May but still above the Fed’s 2% target.

The speech places continued inflation control at the center of the Fed’s mandate while preserving flexibility for future decisions. Al Jazeera characterized the remarks as opening the possibility of rate increases, while The Guardian noted that Warsh did not specify the next move.