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Fed Chair Warsh says policymakers are focused on delivering 2% inflation

The Fed kept the target range for the fed funds rate at 3.5% to 3.75% after its July meeting, citing resilient growth and labor conditions.

Reported · Written up by our desk · Central Banks

Federal Reserve Chair Kevin Warsh told reporters that the committee remains resolute in aiming to deliver its 2% inflation target, emphasizing that inflation cannot be “cured” quickly and that the Fed is watching underlying inflation dynamics amid shocks, according to FXStreet.

Warsh said the discussion at the post-meeting press conference was collegial and that policymakers chose not to provide forecasting, instead noting that prices reacted in real time to incoming information and that reductions in guidance may have played a role.

The Federal Reserve kept its fed funds target range unchanged at 3.5% to 3.75% following the July meeting, and said it is steering toward price stability as inflation stays above the 2% goal in part due to supply shocks in sectors including energy.

Warsh also pointed to solid economic output and a labor market that remains steady, adding that the Treasury market appears to be reflecting those conditions, and said the Fed will continue monitoring market information that could inform its decision in seven to eight weeks.

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