Ed Yardeni of Yardeni Research says new Federal Reserve Chairman Kevin Warsh has “pretty much” committed to bringing inflation down to 2%. That might sound like boilerplate central banking, but the subtext is anything but routine.
Warsh, who was confirmed as Fed Chair in mid-May 2026, is signaling a fundamentally different approach than his predecessor Jerome Powell. Where Powell’s Fed tolerated inflation running above target for extended periods, Warsh is drawing a hard line. He’s reportedly called prior tolerance of above-2% inflation a “fatal policy error.”
A regime change, but not the one crypto hoped for
For five years, inflation has sat stubbornly above the Fed’s 2% target. The previous leadership treated that overshoot as an acceptable tradeoff, a consequence of pandemic-era policy that would eventually self-correct. Warsh is rejecting that framework entirely.
At his first FOMC meeting on June 17, 2026, Warsh kept rates unchanged. The committee revised its inflation outlook higher, but held steady on the policy rate.
