“We Have Work to Do”: Warsh’s Jackson Hole Warning Puts Two Rate Hikes Back on the Table

TLDR

• Fed Chair Kevin Warsh gave a hawkish speech at Jackson Hole, signaling more rate hikes ahead
• Barclays now expects 25-basis-point rate hikes in both September and December
• Warsh said he would be “hard pressed” to call financial conditions restrictive
• Core PCE inflation rose 0.25% in July, pushing Barclays to raise its Q4 forecast to 3.3%
• Fed’s Hammack also called for immediate rate hike action, expecting inflation to end the year near 3%

Federal Reserve Chairman Kevin Warsh delivered a hawkish speech at Jackson Hole over the weekend, raising expectations that the Fed will raise interest rates at least twice more this year.

🚨 BREAKING:

🇺🇸 Fed Chair Kevin Warsh sounded hawkish at Jackson Hole

– Inflation is still too high
– The 2% target remains the priority
– The economy is still strong
– Rates may not be restrictive enough
– Rate cuts could be harder to come by

Bottom line: September rate-cut… pic.twitter.com/7UuqM0vqZy

- ardizor 🧙‍♂️ (@ardizor) August 28, 2026

Barclays economists, led by Jonathan Millar, now expect a 25-basis-point rate hike in September and another in December following the speech.

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