Fed chief Warsh signals US interest rate hikes may be needed, putting him on collision course with Trump

Kevin Warsh, confirmed by the Senate by the narrowest margin in history, now faces a direct challenge to his inflation-fighting mandate from his own administration's bond-buying intervention.

Federal Reserve chairman Kevin Warsh used his Jackson Hole appearance to signal that interest rate rises could be back on the table, as a key inflation gauge remains stubbornly high. That stance puts him on a direct conflict with Trump ahead of the midterms, with the president long having pressed for cheaper borrowing. Warsh vowed to stop 'spoon-feeding' markets with his intentions, marking a sharp break from recent Fed communications strategy.

Warsh's hawkish signals at Jackson Hole raised the stakes for the Fed's next rate-setting meeting.

Trump has consistently pushed for lower rates, making any hike a flashpoint between the White House and the Fed.

Warsh told markets what they wanted to hear on independence, even if it was not what Trump wanted.

The TimesKevin Warsh tells the markets — if not Trump — what they want to hear The TimesKevin Warsh at a crossroads as Fed grapples with inflation Financial TimesWarsh charts a forward-looking path for the Fed at Jackson Hole Financial TimesWarsh puts Fed on collision course with Trump ahead of midterms APWarsh raises stakes for Fed's next meeting and other takeaways from Jackson Hole conference APAmerica In Focus: key inflation gauge remains high; Fed's Warsh signals rate hikes may be needed

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