Fed Chair Warsh plans to continue inflation fight

In an economic policy symposium in Wyoming, Federal Reserve Chairman Kevin Warsh said the central bank will likely continue to focus on fighting inflation, which remains persistently above the Fed’s 2% target.

“If the Fed gets inflation wrong and judges the economy wrong, who gets the worst of it? Not the financial high-fliers. Hard-working Americans are the ones left to deal with inflation that is too high or jobs that suddenly appear less secure,” Warsh said.

He continued, “So, if forward guidance is ill-suited to normal times, then how about the new Fed chief commits—at the very least—to an explicit reaction function? Surely, he should tell us his interest rate path—if, say, the data were to come in hot or cold.”

The Federal Open Market Committee has not adjusted the federal funds rate since December 2025, when it voted to lower the rate by 25 basis points. However, at its July meeting, three FOMC members voted against keeping the rate unchanged, arguing that persistent inflation justifies a rate hike.