Fed chair Warsh sidesteps Senate questions on inflation, AI, contact with Trump
Warsh said he will keep the Fed independent and gave no clear signal on rates as inflation eased to 3.5% last month, officials said.
- On Wednesday, Federal Reserve Chair Kevin Warsh testified before the Senate, evading specific guidance on interest rate moves while addressing questions about AI's inflation impact and his contacts with President Donald Trump.
- Warsh noted the AI investment boom drives capital spending and chip prices, telling lawmakers that measured prices may rise over the next 12 months but such increases might not be inflationary.
- Amid data showing inflation cooled to 3.5 per cent last month from 4.2 per cent in May, Warsh played down the figures, calling current measures of underlying inflation "imperfect."
- When asked by Sen. Chris Van Hollen about his contacts, Warsh would not confirm whether he has spoken with President Trump, though he assured lawmakers the President has not attempted to influence monetary policy.
- Since taking office seven weeks ago, Warsh has provided less guidance on rate moves, intending to rely on findings from five task forces regarding the Fed's monetary policy framework in the months ahead.
18 Articles
18 Articles
Warsh puts inflation credibility first in his initial testimony as Fed chair
Federal Reserve Chair Kevin Warsh used his first congressional testimony in the role to define the sequence of priorities he wants lawmakers and financial markets to understand: inflation credibility comes first, while employment, institutional independence and technological change remain part of the same policy framework. The Fed held its benchmark rate at 3.5% to 3.75% in June, a decision Warsh linked directly to concern over inflation. “The m…
High employment and low inflation can coexist with productive economic growth, says Judy Shelton
Judy Shelton, Independent Institute senior fellow and former Trump Fed Board nominee, joins 'Squawk Box' to discuss Fed Chairman Kevin Warsh's testimony on Capitol Hill, the Fed's inflation fight, and more.
US Stock Market: Fed Chair Warsh keeps rate path unclear as policymakers differ on inflation outlook
Federal Reserve Chairman Kevin Warsh prefers less market signaling on monetary policy. He emphasizes evaluating economic data before adjusting interest rates. Other Fed officials, however, offer clearer views on inflation and policy paths. Rising fuel costs and AI investment add new economic uncertainties. Markets seek more guidance ahead of the upcoming Federal Reserve meeting.
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