His warning suggests policymakers are not yet ready to declare victory over persistent price pressures.
• Warsh said inflation remains too high, underscoring the challenge facing the central bank as it works to restore price stability.
• By leaving the door open to additional rate increases, he signaled that borrowing costs could remain elevated for longer than many households and businesses expect.
• Higher rates typically reduce spending and investment, but they can also weigh on housing, employment and economic growth.
• Investors will closely watch upcoming inflation, jobs and consumer-spending data for clues about the Fed’s next decision.
• Warsh’s comments add to the debate over how aggressively policymakers should act without pushing the economy into a downturn.
The remarks come as officials balance two competing risks: allowing inflation to remain entrenched or tightening financial conditions enough to weaken demand. The Fed’s future path will depend heavily on whether price growth shows sustained signs of cooling.