Fed chair says delivering ‘stable prices’ is central bank’s job as inflation persists
However, Kevin Warsh didn’t say if interest rates would change in coming months, as inflation remains stubborn
TL;DR
- Fed Chair Kevin Warsh emphasized the central bank's job is to deliver stable prices and fight inflation.
- Warsh did not specify future interest rate changes, but markets interpreted his speech as a signal for potential hikes.
- He announced an end to "forward guidance" as a practice that has "overstayed its welcome."
- The US economy "appears to have strengthened" despite shocks, according to Warsh.
- Inflation remains stubbornly above the Fed's 2% target, with recent progress described as "modest."
- The US gross national debt surpassed $40 trillion for the first time.
- Markets reacted with slight increases in US treasury yields following Warsh's remarks.