Fed's Warsh Says Inflation Remains Well Above Target
Forecast Trend Report by Period
Federal Reserve Chair Kevin Warsh said inflation remains well above the central bank's target.
At a press conference after the Federal Open Market Committee meeting on June 17, Warsh said inflation is "well above" the Fed's 2% goal and that persistently high prices are burdening U.S. households.
He also addressed the removal of forward guidance from the statement.
"The current policy environment is not suited to forward guidance," Warsh said. Rather than committing in advance to a policy path, it is more appropriate to make judgments based on economic data, he said.
Warsh added that the latest policy statement was shorter and simpler, containing "just the facts."
Markets are interpreting the remarks as a signal that the Fed will respond flexibly to inflation and employment data rather than lay out a path for future rate cuts in advance.
That view has gained traction after the dot plot released earlier showed a higher rate outlook for 2026, suggesting the Fed's hawkish stance could last longer than expected.
