Summary
- Federal Reserve Chair Kevin Warsh said he will not allow inflation to remain elevated.
- Warsh said the inflation surge of the past five years will become a thing of the past, adding that policymakers share a firm commitment to restore price stability.
- Based on that assessment, the Fed said it decided at last month’s FOMC meeting to hold the benchmark interest rate at 3.50% to 3.75%.
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Federal Reserve Chair Kevin Warsh said he will not allow inflation to remain elevated, according to prepared remarks released ahead of a House Financial Services Committee hearing on July 14.
“Our highest priority is to conduct monetary policy correctly, or as close to correctly as possible,” Warsh said. “That is our clear and unwavering objective, and the standard that guides our direction.”
If policy is conducted correctly, he said, the inflation surge of the past five years will become a thing of the past.
Warsh also pointed to last month’s Federal Open Market Committee meeting, the first he chaired after taking office. He said he and fellow policymakers recognize that high inflation has imposed an excessive burden on US households and businesses.
Committee members also share a firm commitment not to let price pressures persist for an extended period and to restore price stability, he said.
Based on that assessment, Warsh said, the Fed decided at last month’s FOMC meeting to hold its benchmark interest rate at 3.50% to 3.75%.
Shin Yong-hyun, Hankyung.com reporter yonghyun@hankyung.com
Korea Economic Daily
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