New Fed Chair Kevin Warsh commits to restoring price stability, citing monetary policy as the key tool to curb prolonged inflation.
Federal Reserve Chair Kevin Warsh pledged to eliminate five years of above-target inflation during his first congressional testimony, calling monetary policy the central bank’s top priority. He framed price stability as a non-negotiable goal, emphasizing the Fed’s role in controlling long-term inflation trends.
Warsh’s remarks followed a unanimous June decision to hold the federal funds rate at 3.5%-3.75% for the fourth consecutive meeting. While nine of 18 policymakers favored at least one rate hike by year-end, Warsh declined to provide a personal rate forecast, aligning with his skepticism of forward guidance.
The Fed chair echoed his predecessor’s view that persistent inflation imposes an undue burden on households and businesses, signaling a continued focus on tightening measures to anchor expectations.