Kevin Warsh just gave his first press conference as Federal Reserve Chair, and the message was about as subtle as a sledgehammer. The central bank will not accept high inflation. Period.
Speaking after the Federal Open Market Committee’s June 17 meeting, Warsh made clear that the Fed’s 2% inflation target isn’t aspirational. It’s a deadline the institution has been missing for more than five years running.
Rates held steady, but the hawkish undertone is hard to miss
The FOMC voted to keep interest rates at 3.5-3.75%, marking the fourth consecutive pause. Updated projections from the committee show core inflation staying at roughly 2.5% through 2027, still meaningfully above the Fed’s 2% target. The forecasts also left the door open for potential rate hikes of 0.25% later in 2026.
Warsh described the persistence of inflation above 3% for over half a decade as “a choice,” a pointed framing that suggests he views the prior Fed leadership’s approach as insufficiently aggressive.
