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Warsh to say Fed has ‘no tolerance’ for high inflation but provides no hints on next move
Warsh said policymakers may need to keep rates steady or raise them as inflation stays above the Fed’s 2% target, according to testimony.
- Federal Reserve Chair Kevin Warsh pledged Tuesday to make high inflation 'a thing of the past' during his first congressional testimony, appearing before the House Financial Services Committee and Senate Banking Committee on Wednesday.
- Inflation has exceeded the Federal Reserve's 2% target since 2021, reaching 4.1%, straining American households and businesses through soaring energy costs and massive AI infrastructure investment by hyperscalers like Alphabet, Microsoft, Amazon, and Meta Platforms.
- Warsh identified AI investment as 'the most striking feature of the economy right now,' driven by data center construction and equipment demand; surging semiconductor prices have raised costs for laptops, tablets, and video game consoles.
- The Fed's 19-member rate-setting committee remains divided, with about half expecting rate increases by year-end while nearly half anticipate no change or cuts; Warsh declined to signal whether rate hikes would be necessary.
- Warsh's expectation that AI productivity will prove disinflationary faces skepticism from some economists and Fed officials, while five task forces will review Fed operations as part of a 'regime change' promised last year.
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51 Articles
Fed chief Warsh vows to 'do my job' if challenged by Trump
U.S. Federal Reserve Chairman Kevin Warsh on Tuesday vowed to "do my job" if challenged by President Donald Trump, his most direct comment so far about how he would handle the sort of pressure his predecessor felt through much of his tenure.
·New York, United States
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Kevin Warsh says Fed has ‘no tolerance’ for inflation in first testimony as chairman on Capitol Hill
Fed Chairman Kevin Warsh plans to stick to his hawkish, anti-inflation stance during his first appearance before Congress Tuesday, telling lawmakers the central bank has “no tolerance” for stubbornly high inflation.
·New York, United States
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Total News Sources51
Leaning Left12Leaning Right13Center15Last UpdatedBias Distribution38% Center
Bias Distribution
- 38% of the sources are Center
38% Center
L 30%
C 38%
R 32%
Factuality
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