Gold drops over 3% after Warsh inflation warning
09:21, 29/08/2026, SaturdayU: Update: 09:34, 29/08/2026, Saturday
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Former Federal Reserve Governor Kevin Warsh told the Jackson Hole Economic Policy Symposium that additional monetary policy steps may be needed if inflation does not fall to target levels, triggering a sharp selloff that saw gold tumble more than 3% on Friday.
Former Federal Reserve Governor Kevin Warsh warned Friday that additional tightening may be needed if inflation persists. Speaking at the Jackson Hole symposium, he signaled recent price data did not indicate meaningful underlying improvement.
"While this summer's personal consumption expenditures and consumer prices index readings were better than expected, they do not tell me that underlying trends have meaningfully improved," Warsh said. Gold fell 3.18% to $4,454 per ounce while silver dropped 4.2% to $66.3.
Policy outlook
Warsh's comments weighed on hopes for swift rate cuts. Federal Reserve officials are scheduled to convene next month.
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