Warsh Warns Inflation Fight Reaches Boiling Point at Fed's September Meeting

Yesterday, Federal Reserve Chair Kevin Warsh made it clear that the September 15-16 policy meeting is a crucial moment in the central bank's fight against inflation. He emphasized that controlling inflation remains the Fed's primary objective and that without a decline in underlying price pressures, the institution will 'have work to do.'

The numbers tell the story of a Fed that hasn't yet won its fight. The PCE measure, the central bank's preferred inflation gauge, sat at 3.7% year-over-year as of the latest reading. This is even worse when looking at the six-month annualized rate through July 2026, which stands at 4.1%.

Warsh has been letting the data do the talking and has explicitly stated he won't provide traditional forward guidance. He's maintained rates in the 3.5% to 3.75% range throughout his tenure while signaling openness to tightening if inflation progress stalls.