NewsABC Action News (WFTS) — NewsAugust 28, 2026Hillsborough County
Federal Reserve Chair Kevin Warsh signals potential interest rate hikes to combat inflation
Photo: ABC Action News (WFTS) — News
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.
Read the full story at ABC Action News (WFTS) — NewsWhy It Matters
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.