🚨 FED CHAIR KEVIN WARSH JUST DELIVERED A MAJOR WARNING ON INFLATION AND INTEREST RATES. Key points from his Jackson Hole speech: → The Fed’s 2% inflation target is “firm and fixed.” → Inflation is still too high, with PCE at 3.7% over the past year. → 54% of goods and services in the PCE basket are still seeing price increases above 3%. → Recent better inflation data has NOT convinced him that the underlying trend has improved. → The economy remains strong and the labor market is near full employment. → Financial conditions are NOT restrictive despite current interest rates. → S&P 500 profits have jumped more than 20% over the past year. → More than half of this year’s business investment growth is linked to the AI buildout. → Warsh called AI a potential “hinge point” for economic growth, but questioned how quickly it will actually boost productivity. → He warned that inflation expectations can look stable “until they don’t.” → He said the Fed itself is responsible for 65 months of elevated inflation. → Warsh wants less forward guidance and said markets should stop looking to the Fed for their “next trade.” → He said interest rates should remain the Fed’s main policy tool, with unconventional measures reserved for real crises. → Most importantly, Warsh said the Fed must see inflation moving clearly and quickly toward 2% — otherwise, “we have work to do.” Warsh did NOT commit to a September rate hike, but his message was clearly hawkish: inflation remains the Fed’s biggest problem, the economy is still strong, and further tightening remains on the table.(Crypto Rover)