NewsABC Action News (WFTS) — NewsAugust 28, 2026Hillsborough
Federal Reserve Chair Kevin Warsh signals potential interest rate hikes to combat inflation
Federal Reserve Chair Kevin Warsh indicated that interest rates may need to rise in the coming months because current inflation levels remain above the Fed's 2% target. Warsh stated that underlying economic trends have not improved enough to justify holding rates steady, despite recent cooling in some data.
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Changes to interest rates set by the Federal Reserve directly influence the cost of borrowing for mortgages, credit cards, and business loans for all Americans.
Key Facts
- Federal Reserve Chair Kevin Warsh stated that inflation remains too high and current interest rates may not be restrictive enough to reach the 2% target.
- The Fed's preferred inflation measure was 3.7% in July.
- 54% of goods and services tracked by the government saw price increases of 3% or higher over the past year.
- The Federal Reserve is scheduled to meet next on September 15-16.
- Wall Street investors are betting on a rate hike by December based on CME FedWatch futures pricing.
- The 30-year Treasury bond yield reached its highest level in 19 years last week.
- Treasury Secretary Scott Bessent recently initiated a bond buyback program to lower yields.
- President Trump has publicly called for lower interest rates and has sought to remove Fed Governor Lisa Cook.
- Warsh replaced Jerome Powell as Fed Chair on May 22.