Federal Reserve Chairman Kevin Warsh has issued a stark warning that interest rates may need to remain elevated for longer if inflation fails to retreat to the central bank's target.
The comments reinforce the Fed's hawkish stance amid persistent price pressures across the economy.
The warning comes as the Federal Reserve has highlighted that inflationary pressures have intensified this year, remaining well above the long-term 2% target.
Warsh declared that prices remain "excessively high," dismissing any notion that the central bank would be satisfied with incremental progress.
His remarks underscore a shift in tone, suggesting that the Fed is prepared to keep borrowing costs restrictive until it sees conclusive evidence that inflationary pressures have abated.
The warning comes as the Federal Reserve has highlighted that inflationary pressures have intensified this year, remaining well above the long-term 2% target.
In its latest economic assessment, the central bank emphasized the need for sustained disinflation before considering any policy easing.