Federal Reserve Chairman Kevin Warsh indicated Friday that he would consider interest rate hikes in the near future if inflation persists above the central bank’s 2 percent target.

“There is one signal nobody can miss: The responsibility for 65 months of sustained, elevated inflation sits squarely with the central bank. And that is where it belongs,” Warsh, a long-time inflation hawk, said in his speech at the Fed’s annual confab at Jackson Hole, Wyoming. “Here is my standard: We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do.”

Subscribe Today

Get daily emails in your inbox

Email Address:

Warsh argued that, despite inflationary headwinds, economic performance has been impressive. “For my part, today I am impressed by the overall performance of the economy, which appears to have strengthened,” he said. “One indicator of strength is how well an economy holds up to shocks. On that score, both Main Street and Wall Street have been remarkably resilient.”

Warsh spoke positively of labor market conditions and especially about the potential for economic growth. “We’ve come to a hinge point in history,” he said, pointing to artificial intelligence development as a possible growth factor unprecedented in recent times.

Warsh also reiterated his commitment to limiting the Fed’s forward guidance. “A quieter Fed, more purposeful in its communications, is better able to meet its objectives,” he said.