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[BUSINESS] · United States · 83 sources

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Fed Chair Kevin Warsh pledges aggressive inflation fight and regime change in first congressional testimony

Federal Reserve Chair Kevin Warsh testified before the House Financial Services Committee, stressing that the Fed has "no tolerance" for persistently elevated inflation and describing the price surge as an unfair tax on American households. He announced a “regime change” in monetary policy, launching five task forces to review the Fed’s communications, balance‑sheet tools, data usage and inflation framework. Warsh also reaffirmed the central bank’s independence, rejecting any political pressure from President Donald Trump, and promised that the Fed will not engage in bailouts, including for stable‑coin or cryptocurrency firms.

Warsh’s remarks came as July CPI data showed a modest decline in headline inflation to about 3.5% year‑over‑year, with core inflation steady at 2.6%, easing market expectations for an immediate rate hike. Nonetheless, Fed Governor Christopher Waller warned that if inflation remains above target, the committee may need to raise rates in the near term. Markets reacted with the New York Stock Exchange posting modest gains and the dollar hovering near 13‑month highs amid heightened oil price concerns from renewed U.S.–Iran tensions.

Overall, Warsh emphasized that controlling inflation remains the Fed’s top priority, that reforms are under way to improve policy effectiveness, and that any future monetary decisions will be data‑driven and insulated from political influence.

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Biden’s inflation tax persists | CDN [conservativedailynews.com]
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