Warsh's Hawkish Pivot: Fed Eyes Rate Hikes as Jobs Data Weakens and Consumer Confidence Fades

Federal Reserve Chair Kevin Warsh declared inflation "more concerning" than the job market at the Jackson Hole symposium, signaling the central bank may need to raise interest rates. Headline inflation slowed to 3.4% in July but remains stubbornly above the 2% target, with Warsh warning that "we must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do."

Headwinds

• **Jobs revision...