Fed Chair Warsh Warns Inflation “Work to Do” as Bitcoin Drops and Rate Hike Bets Rise

TLDR

• Fed Chair Kevin Warsh said the central bank’s focus must be on getting inflation back to its 2% target
• Warsh said recent PCE and CPI data have not shown that underlying inflation trends have meaningfully improved
• September rate hike odds jumped to 42% from 35% following the speech, per CME FedWatch
• Bitcoin dropped nearly 2% on the hawkish remarks, trading around $79,200
• Polymarket now shows a 68% chance the Fed hikes rates this year, up from below 50% last week

Federal Reserve Chair Kevin Warsh used his high-profile Jackson Hole address Friday to warn that inflation remains a problem and that the central bank still has work to do.

🚨 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

“The responsibility for 65 months of sustained, elevated inflation sits squarely with the central bank,” Warsh said at the Kansas City Fed’s annual symposium in Wyoming.

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