Fed chief Kevin Warsh shuns detailed inflation plan, launches expert panels

Kevin Warsh, the newly appointed head of the United States Federal Reserve, said he will not present a concrete strategy for reducing inflation, preferring to let market forces work. Critics argue that the lack of a clear plan could undermine the Fed’s credibility and its ability to anchor expectations.

Warsh also announced the creation of five working groups that will review key parts of monetary policy – communication, balance‑sheet policy, data foundations, productivity and labor‑market dynamics – using external economists, business leaders and former central‑bank officials. Some economists, such as Nordea chief economist Kjetil Olsen, doubt the groups will meaningfully lower inflation or interest rates.