Warsh on Inflation
Fed Chair Kevin Warsh signals a hard line against persistent inflation in first hearing.
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Analysis & opinion
The reporting
Federal Reserve Chair Kevin Warsh told Congress in his first testimony since taking office May 22 that policymakers have “no tolerance for persistently elevated inflation” and are committed to returning inflation to the Fed’s 2% target. Warsh said high inflation has burdened households and businesses and pledged to make it “a thing of the past,” while calling for a “regime change” in monetary-policy practices. He did not signal whether the Fed’s next move would be a rate hike, cut or hold.
Analysis & opinion
Inflation-First FedBalanced
Warsh signaled that the Federal Reserve under his leadership would put inflation control at the center of policy. His testimony pointed to a hawkish approach aimed at restoring the 2 percent target, even if that means keeping borrowing costs elevated.
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