Warsh Keeps Rates Steady, Vows to Meet 2% Inflation Target

Federal Reserve Chair Kevin Warsh held interest rates steady at the central bank's latest meeting, as expected. In a press conference following the decision, Warsh addressed concerns about dissenting votes and the shift away from forward guidance.

Warsh noted that more than five years of inflation above target could not be resolved in nine weeks or by a single month of modest price declines. He emphasized the Fed's commitment to its 2% inflation target and post-FOMC press conferences at least through 2026.

The Chair highlighted two key economic developments since the previous meeting: the rise in nominal and real yields across the Treasury curve, and the surge in U.S. business investment, particularly in high-tech capital expenditures, which grew by nearly 20% in four quarters.