Kevin Warsh has become chair of the Federal Reserve’s Board of Governors during a time when the agency is grappling with how to rein in inflation without tipping the economy into a recession.
Now, Warsh is getting some help
The Consumer Price Index (CPI), which tracks the prices on a basket of consumer goods and services, fell a seasonally-adjusted 0.4% in June, the largest decline seen in six years. The headline year-over-year CPI clocked in at 3.5%, down from 4.2% in May. While a soft CPI had been expected, due to declining energy prices in June, both numbers came in lighter than economists had expected.
Furthermore, core inflation, which strips out more volatile food and energy prices, was flat in June and up 2.6% year over year. Economists had projected increases of 0.2% and 2.9%. It’s all great news for Warsh.