{"id":934448,"date":"2026-07-14T14:29:15","date_gmt":"2026-07-14T14:29:15","guid":{"rendered":"https:\/\/www.europesays.com\/us\/934448\/"},"modified":"2026-07-14T14:29:15","modified_gmt":"2026-07-14T14:29:15","slug":"warsh-vows-to-crush-inflation-but-offers-no-hint-on-the-feds-next-move","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/934448\/","title":{"rendered":"Warsh vows to crush inflation but offers no hint on the Fed\u2019s next move"},"content":{"rendered":"

WASHINGTON (AP) \u2014 Federal Reserve Chair Kevin Warsh said in written testimony Tuesday the Fed will make high inflation<\/a> \u201ca thing of the past,\u201d yet provided no signal about the central bank\u2019s next steps. <\/p>\n

Fed policymakers \u201chave no tolerance for persistently elevated inflation,\u201d Warsh will say when he testifies at 10 a.m. Eastern before a House committee. \u201cAnd we share a resolute commitment to restoring price stability.\u201d <\/p>\n

Yet about half<\/a> of the 19 members of the Fed\u2019s interest rate-setting committee expect they will have to raise the central bank\u2019s key rate by the end of the year to defeat inflation, while nearly half have penciled in no change or even a rate cut. Warsh faces a stiff challenge in reconciling the divided committee while navigating a rapidly-changing economic outlook. <\/p>\n

In keeping with his stated policy of providing less guidance about the Fed\u2019s policies, he did not signal in his testimony whether rate increases would be necessary to combat inflation, which has reached 4.1%, according to the Fed\u2019s preferred measure, far above its 2% target. He will deliver the testimony to the House Financial Services Committee Tuesday morning and then face questions from committee members.<\/p>\n

The renewal of the Iran war has caused oil prices to climb again<\/a> after they had fallen back to nearly their prewar level. Gas prices had fallen about 20% from their peak but have also increased in the past week and are still about 35% higher than they were when the U.S. attacked Iran Feb. 28. <\/p>\n

The government\u2019s latest report released Tuesday showed that prices dropped 0.4% in June from May, the largest monthly drop in four years. On a yearly basis, inflation declined to 3.5%, down from a year-over-year gain of 4.2% in May<\/a> and lower than many economists expected.<\/p>\n

Some Fed officials have argued that underlying inflation, even excluding the impact of gas prices, remains elevated and may require higher interest rates to defeat. <\/p>\n

Another factor that could boost inflation for the rest of this year is the massive investment in artificial intelligence infrastructure<\/a> by the so-called \u201chyperscalers,\u201d such as Google parent Alphabet, Microsoft, Amazon, and Meta Platforms. The spiking demand for memory chips and processors has sent semiconductor prices soaring, leading to price hikes for laptops, tablets, and video game consoles. <\/p>\n

Warsh said Tuesday that AI investment is \u201cthe most striking feature of the economy right now\u201d and said the Fed is \u201cmonitoring the implications\u201d for inflation and jobs. <\/p>\n

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Other Fed officials have stepped in to provide guidance as Warsh has declined to do so. Fed Governor Christopher Waller on Monday said that another \u201chot\u201d inflation report Tuesday would mean the Fed would have to consider raising rates \u201cin the near term.\u201d<\/p>\n

But last week John Williams, president of the Federal Reserve Bank of New York, said that if core inflation stays at a 0.2% monthly pace for the rest of this year, the Fed could avoid hiking rates. Williams\u2019 approach implies the Fed would keep rates steady for some time while it monitors incoming data. <\/p>\n","protected":false},"excerpt":{"rendered":"WASHINGTON (AP) \u2014 Federal Reserve Chair Kevin Warsh said in written testimony Tuesday the Fed will make high…\n","protected":false},"author":3,"featured_media":906365,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[7060,6229,64,2309,2239,12042,79,455,60,57,59,266,83,6087,73319,75621,7062,14229,61,67,132,68],"class_list":["post-934448","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alphabet","tag-amazon-com","tag-business","tag-christopher-waller","tag-economic-indicators","tag-economic-policy","tag-economy","tag-federal-reserve-system","tag-financial-services","tag-general-news","tag-inc","tag-inflation","tag-iran","tag-iran-war","tag-john-williams","tag-kevin-warsh","tag-meta-platforms","tag-microsoft-corp","tag-u-s-news","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116918810617400618","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/934448","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=934448"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/934448\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/906365"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=934448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=934448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=934448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}