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Warsh Warns Rates May Rise as Inflation Stays High

9/1/2026

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Story summary
  • Federal Reserve (Fed) Chairman Kevin Warsh warned that interest rates may need to rise in coming months.
  • Warsh said inflation remains too high, with over half of goods and services up at least 3%.
  • He criticized forward guidance, arguing oversharing policy decisions limits the Fed’s flexibility.
  • Warsh said the 3.5%-3.75% range does not restrict activity, pointing to AI investment and consumer spending.