Warsh Signals Inflation Fight

Federal Reserve Chair Kevin Warsh used a Wednesday appearance at the European Central Bank Forum in Sintra, Portugal, to emphasize that the central bank will remain politically independent and focused on bringing inflation down. Warsh said prices remain too high even as inflation risks have eased in recent weeks, helped in part by falling energy prices after a U.S.-Iran memorandum of understanding. He avoided offering forward guidance on interest rates, saying policymakers would debate behind closed doors and declining to satisfy demands for clues on future moves. His comments likely dampen President Donald Trump’s hopes for near-term rate cuts while reinforcing Warsh’s stated shift toward a more restrained communications approach.