Kevin Warsh walked into his first big international moment as Federal Reserve Chair and made one thing immediately clear: the Fed’s 2% inflation target is not a suggestion.
Speaking at the ECB Forum on Central Banking in Sintra, Portugal, Warsh shared a policy panel on July 1 with some of the most influential monetary policymakers on the planet. European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey, and Bank of Canada Governor Tiff Macklem were all in the room. The message Warsh delivered to that audience, and to the markets watching closely, was unambiguous.
Anyone hoping the new Fed chair might quietly tolerate inflation running above target, he suggested, was going to be disappointed.
A hawkish debut on the global stage
The ECB Forum, held June 29 through July 1, 2026, is essentially the Davos of central banking. Policymakers gather in the Portuguese hill town every year to debate the big macro questions, and this year’s themes centered on innovation, growth, and stability, with artificial intelligence and productivity getting notable airtime.
