Kevin Warsh just chaired his first Federal Open Market Committee meeting, and he came out swinging. The new Federal Reserve chairman, who was sworn in on May 22, 2026, after a 54-45 Senate confirmation vote, made his monetary policy philosophy crystal clear: inflation is the enemy, and the Fed is going to war.
A hawkish debut
At the June 17 FOMC meeting, the committee held the benchmark federal funds rate steady between 3.5% and 3.75%. The median dot plot from the meeting shifted toward one rate hike by late 2026, completely reversing the dovish signals that had been building under prior guidance.
“This committee will deliver price stability.”
That was Warsh’s central message. He added that the Fed “will not tolerate high inflation,” a phrase that carries significant weight when inflation has been lingering around 3.8% to 4.2% due to persistent pressures including geopolitical tensions.
