Warsh Confronted on Inflation as Pressure Mounts

Pressure is mounting on Federal Reserve Chairman Kevin Warsh to combat inflation, which has been above the Fed's 2% target for more than five years. Core inflation, excluding volatile energy and food categories, has risen since last December and remained stuck at around 3% or higher since 2023.

Warsh has emphasized that the Fed will get inflation back to 2%, but he has refused to provide specific signals about future rate hikes. In his first news conference as chair, Warsh stated that the Fed has 'no tolerance' for higher inflation and pledged to deliver price stability.

Some Federal Reserve officials are growing impatient with inflation's stubbornness. Lorie Logan, president of the Federal Reserve Bank of Dallas, said recently, 'Unfortunately, inflation does not appear to be headed sustainably back all the way to 2%.'