Warsh Confronted on Inflation as Fed Holds Rates Steady

During his second Federal Open Market Committee press conference since taking office in May, Federal Reserve Chairman Kevin Warsh faced sharp questioning from Bloomberg's Michael McKee. The exchange centered on the Fed's reluctance to raise interest rates despite stubborn inflation.

Earlier that day, the FOMC announced its decision to hold interest rates steady for a fifth consecutive meeting, with three members dissenting in favor of a quarter-point rate hike.

This divide among policymakers was highlighted when Warsh was asked by Ann Saphir of Reuters why he had taken no action on inflation despite promising price stability. McKee's earlier question, 'What are you waiting for?' seemed to encapsulate the frustration with the Fed's inaction.