NEW YORK, Aug. 28 (Xinhua) -- U.S. Federal Reserve Chairman Kevin Warsh said Friday that the Fed's predominant focus right now should be on prices, as inflation remains above its 2-percent target.

Speaking at the annual Jackson Hole Economic Policy Symposium, Warsh said, "On the price stability side of our mandate, the numbers are more concerning."

Warsh's remarks came as broad inflation measures have fallen from their 2022 peaks, though Warsh characterized the progress over the past two years as modest. He pointed specifically to the Personal Consumption Expenditures (PCE) price index, noting that "the numbers are more concerning."

While summer inflation readings were better than expected, Warsh stressed that they do not indicate a meaningful improvement in underlying trends.

The Federal Reserve's preferred inflation gauge came in slightly above expectations, with the annual inflation rate holding steady at 3.7 percent, data released by the Commerce Department showed on Wednesday.

The PCE price index increased by a seasonally adjusted 0.2 percent for the month, slightly exceeding expectations, while core PCE inflation, which excludes volatile food and energy prices, matched forecasts with a 0.2 percent monthly increase and a 3.3 percent year-over-year rise.

In contrast to the lingering inflation challenges, Warsh painted a robust picture of the broader U.S. economy.

Looking ahead, Warsh emphasized that the central bank will remain "keenly focused on market internals" and performance across various sectors. He pledged to continue tracking changes in the growth rates of corporate earnings and capital spending, as well as their follow-on effects on asset prices, business confidence, consumer income, and spending.

Following the speech, major U.S. stock market indexes remained little changed, while Treasury yields moved substantially higher as bond investors digested the hawkish undertones regarding inflation and economic strength.