The head of the US central bank stated policymakers will 'have work to do' to if they are not confident cost of living pressures are easing for Americans.

Federal Reserve chairman Kevin Warsh stated while inflation readings looked better than expected over the summer, they did not show that the current picture had 'meaningfully improved'. For related coverage, explore our detailed analysis on Technology and Digital Systems.

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The new Fed boss stressed that his remarks should not be treated as a guide for future interest rate decisions, but the comments suggest rates could be raised if policymakers believe inflation is too high.

The latest figures demonstrated prices rose 3.4% in the year to July, above the Fed's 2% target.

Warsh made the comments in his first speech at the annual Jackson Hole Economic Policy Symposium in Wyoming, which sees central bankers, government authorities and academics from around the world gather to talk about interest rates, inflation and other economic issues.

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The head of the US central bank stated policymakers will "have work to do" to if they are not confident cost of living pressures are easing for Americans.

Federal Reserve chairman Kevin Warsh stated while inflation readings looked better than expected over the summer, they did not show that the current picture had "meaningfully improved".

Warsh stated given prices were rising "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." The central bank boss has remained tight-lipped about the potential path of interest rates, but investors will have watched his speech closely for any signs of the Fed's approach under his leadership.

The central bank's next interest rate decision will be made on 15-16 September.

Warsh delivered a plea in his speech to not label his remark as "forward guidance" and stated he believed the practice of sending signals to the markets on future interest rate decisions, adopted in the wake of the 2008 financial crisis, had "overstayed its welcome".

"Oversharing policy deliberations and overcommitting to future decisions can lead markets, businesses, and households astray," he stated, adding it also inhibited the Fed the "freedom to make the right calls when it's time to decide".