Kevin Warsh steps up to the podium for his first FOMC meeting this week with a 4.2% inflation rate staring him down and a former president publicly demanding he do the opposite of what the data suggests. Welcome to the job.
The 17th Federal Reserve chair, sworn in on May 22, 2026, will lead the June 16-17 meeting of the Federal Open Market Committee at a moment when consumer prices are running at their hottest since April 2023. The May 2026 Consumer Price Index came in at 4.2% year-over-year, up from 3.8% in April. Core CPI, which strips out food and energy, sits at 2.9%. Neither number is anywhere close to the Fed’s 2% target.
The inflation picture is getting worse, not better
The main culprit behind the acceleration is energy. Gasoline prices have surged 40.5%, driven by geopolitical tensions related to the Iran conflict.
Core inflation at 2.9% suggests the price pressures aren’t just about oil. They’re broadening across the economy. A tight labor market continues to push wages higher, which feeds into service-sector prices.
