An interest rate move would be up for debate when policymakers meet at the end of July, Federal Reserve Chair Kevin Warsh said, as the central bank faces mixed economic signals with U.S. jobs growth slowing to begin the summer. Speaking at a televised forum hosted by the European Central Bank, Warsh observed on Wednesday that inflation risks have eased in recent weeks, reflecting lower oil prices compared with their highs during the Iran conflict. But he added that inflation remains “too high” while the demand side of the economy powers ahead. “When we get into that room and shut the door, we’re going to have a good debate,” Warsh said of the Fed’s next policy meeting. His remarks came one day before U.S. data showed that employers added 57,000 jobs in June, according to the Labor Department on Thursday. Jobs growth was revised to 129,000 in May, compared with a prior estimate of 172,000. The unemployment rate in June fell to 4.2% from 4.3%.

Officials could consider a rate hike amid an upturn in inflation and signs that hiring was generally stronger in the first half of 2026. The U.S. economy has also benefited from an increase in productivity and AI-driven capital expenditures, Warsh noted at the ECB event. Meanwhile, the factory sector expanded in June, albeit at a slower pace than the previous month, according to an Institute for Supply Management survey on Wednesday. Manufacturers continued to report paying higher prices for raw materials but said those price increases slowed during the month. Core inflation, which excludes food and energy categories, hit 3.4% year-over-year in May, the Commerce Department said in its report on personal consumption expenditures last week.

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