Warsh pledges 2% inflation goal, signals higher-for-longer policy

Federal Reserve official Kevin Warsh testified before the House Financial Services Committee, reaffirming the central bank’s commitment to returning inflation to 2% and signaling a higher-for-longer stance on rates. He argued there is no tolerance for persistently elevated inflation and that policy must remain restrictive as prices move toward the target, even as June’s CPI showed inflation cooling to 3.5%. Warsh downplayed one data print as insufficient to claim victory, outlined plans for five new Fed task forces to improve functions like communication and data collection, and stressed he will follow the law and the data—regardless of political pressure to cut rates.