Warsh on Inflation
Fed Chair Kevin Warsh signals a hard line against persistent inflation in first hearing.
Summary
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.
Coverage Angles
Inflation Hardliner
Center & RightWarsh is declaring that elevated inflation will not be accepted under his leadership. The Fed is being put on a mission to make persistent price pressure a thing of the past for American households.
No Rate Signal
Mostly CenterTough anti-inflation language did not come with clear guidance on what the Fed will do next. Investors and lawmakers were left without an answer on whether rate hikes are coming.


