Kevin Warsh reiterated the Federal Reserve’s commitment to tackle rising prices, nudging up investor expectations of a rate increase.

© Natalie Behring/Getty Images

However, Kevin Warsh didn’t say if interest rates would change in coming months, as inflation remains stubborn

The US Federal Reserve is not done fighting high inflation, its chair, Kevin Warsh, said in his first major speech in the role on Friday, emphasizing that it was “the Fed’s job to deliver stable prices”.

Warsh did not indicate where the Fed will take interest rates in the coming months, despite US inflation remaining stubbornly above the central bank’s 2% target amid the war in Iran. But his speech was taken by markets as a signal that rates may rise in the coming months, a move that may put him at odds with Donald Trump, who has aggressively called for rates to be cut.

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© Photograph: Natalie Behring/Getty Images

© Photograph: Natalie Behring/Getty Images

© Photograph: Natalie Behring/Getty Images

In a high-profile speech, Kevin M. Warsh said the Federal Reserve was chiefly responsible for taming inflation. If price increases do not return to the central bank’s target quickly, “we have work to do,” he said.

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Investors want Kevin Warsh, the Fed chairman, to address inflation, interest rates and the bond market in a major speech. Some worry he won’t say enough.

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We are approaching a credibility crisis with Scott Bessent and Kevin Warsh leading our economy.

© Nathan Howard/Reuters