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Fed Chair Warsh reiterates commitment to 2% price stability

Warsh told lawmakers the Fed has no tolerance for persistently elevated inflation, reinforcing a restrictive policy stance while the Fed’s overall tone stays hawkish versus its history.

Reported · Written up by our desk · Central Banks

Federal Reserve Chairman Kevin Warsh reiterated before the US House Financial Services Committee that the Fed is committed to price stability and its 2% inflation goal, emphasizing that it has no tolerance for persistently elevated inflation.

In prepared remarks on the Fed’s Semiannual Monetary Policy Report, Warsh argued that inflation will be largely determined by monetary policy, and that getting policy right could end the inflation surge seen over the prior five years.

The testimony was scored by FXS Speechtracker at 7/10, matching the historical average, and the FXS Fed Sentiment Index remained at 127.19, indicating the speech did not shift the policy tone away from hawkish expectations.

FXStreet also noted that the US dollar was weakest against the New Zealand dollar on the day, according to its snapshot of percentage moves across major currencies.

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