Warsh Vows to Tame Inflation Ahead of Fed Rate Decision
Federal Reserve Chair Kevin Warsh has reaffirmed his commitment to bringing inflation back down to the central bank's 2% target. This comes as the Fed prepares for its upcoming July meeting, where it will decide on interest rates.
Warsh has stated that inflation is a choice and that he believes it can be managed under his leadership. However, some forecasters are uncertain about the Fed's next move, given recent fluctuations in employment numbers and renewed tensions between the US and Iran.
The central bank typically uses two primary tools to navigate its dual mandate of maximum employment and stable prices: its balance sheet and the federal funds rate. Raising the benchmark interest rate can help cool inflation but would also make borrowing more expensive for consumers.