Fed Chair Warsh shares annual monetary policy report with Congress

In the annual monetary policy report, Federal Reserve Chairman Kevin Warsh told the House Financial Services Committee and the Senate Banking Committee that the economy continues to expand at a solid pace, but he emphasized that the Fed remains firmly focused on controlling inflation.

Warsh offered no indication of imminent rate relief and noted continued weakness in housing. He also announced a broader review of the Fed’s monetary policy practices, including its balance sheet, asset holdings, and ample-reserves framework, through his recently announced task forces.

The task forces are led by prominent economists, former central bank officials, and private-sector executives. Participants include former Bank of England Governor Mervyn King, former Reserve Bank of India Governor Raghuram Rajan, former Federal Reserve Governor Jeremy Stein, former Walmart CEO Doug McMillon, venture capitalist Marc Andreessen, Microsoft executive Asha Sharma, economist Greg Mankiw, and Nobel laureate Thomas Sargent.