Under Kevin Warsh, Fed reiterates resolve to fight inflation in the U.S.

Kevin Warsh, the new chairman of the U.S. Federal Reserve appointed by Donald Trump, has declared the institution's unwavering determination to combat inflation, which has reached its highest level in three years. Warsh aims to restore price stability, stating that persistent price increases are heavily burdening Americans.

“

Inflation is far exceeding the Fed's long-standing 2% target. This situation has persisted for over five years. The persistent rise in prices is heavily burdening Americans.

Despite President Trump's desire for lower interest rates, the Fed appears poised to pursue a different path if necessary. Warsh acknowledged the financial markets' scrutiny and the need to defend his credibility, especially given the context of his appointment. He announced the creation of five working groups tasked with exploring potential changes to the Fed's operational and communication methods, aiming to usher in a "new chapter" in the central bank's interaction with financial markets.

“

The monetary policy committee will bring back price stability.

The Federal Open Market Committee (FOMC) kept its benchmark interest rate steady between 3.50% and 3.75% for the fourth consecutive meeting. However, monetary officials, excluding Warsh, have indicated that a tightening of monetary policy could occur by the end of the year. Warsh himself expressed skepticism about the utility of economic projections, believing they can hinder the Fed's responsiveness to changing economic conditions.

“

A new chapter