U.S. Federal Reserve Chair Kevin Warsh expressed concern over recent U.S. inflation trends on the 28th (local time), signaling a readiness to take "additional measures" if necessary.

Speaking in a keynote address at the Jackson Hole Economic Symposium in Wyoming, Warsh said, "While the personal consumption expenditures (PCE) price index and the consumer price index (CPI) fared better than expected this summer, the underlying trend cannot be viewed as having meaningfully improved."

Taking the Jackson Hole stage for the first time since his inauguration in May, he noted that the day marked his 100th day in office, diagnosing that "from the perspective of price stability, which is one of our mandates, the relevant indicators are in a more concerning situation."

He subsequently assessed that current financial conditions could hardly be described as "restrictive."

"We must have confidence that underlying inflation is moving toward our target at a clear and sufficient pace," Warsh stated. "Otherwise, we have work to do. That is our mission, our mandate, and our task."

Emphasizing the Fed's 2 percent inflation target, he called it a "firm and anchored goal."

Aside from his concerns over inflation, Warsh offered a relatively optimistic outlook for the broader real economy.

Mentioning benefits such as productivity gains driven by artificial intelligence (AI) innovation, he noted that corporate and consumer spending remain robust.

He also explained that the recent slowdown in job growth stems from constrained labor supply rather than weak demand.

However, regarding communication with the market, he continued to emphasize a "quieter, more purposeful Fed."

Early in his speech, Warsh joked, "You can call this an outline, or you can call it a trail map, but just please do not call it forward guidance," adding that forward guidance "has run its course."

Following the speech, the market interpreted Warsh's remarks as a signal for potential additional tightening and interest rate hikes.

According to the CME Group's FedWatch Tool, the probability of the Fed holding interest rates steady in September, as reflected by the fed funds futures market, rose from 35.4% the previous day to 55.7% on this day.

(Photo: AP, Yonhap News)