WASHINGTON (AP) — Federal Reserve Chair Kevin Warsh pledged to make high inflation “a thing of the past” in his first congressional testimony Tuesday, yet provided no signal about the central bank’s next steps. Fed policymakers “have no tolerance for persistently elevated inflation,” Warsh said in written remarks. “And we share a resolute commitment to restoring price stability.” Yet about half of the 19 members of the Fed’s interest rate-setting committee expect they will have to raise the central bank’s key rate by the end of the year to defeat inflation, while nearly half have penciled in no change or even a rate cut. Warsh faces a stiff challenge in reconciling the divided committee while navigating a rapidly-changing economic outlook. In keeping with his stated policy of providing less guidance about the Fed’s policies, he did not signal in his testimony whether rate increases would be necessary to combat inflation, which has reached 4.1%, according to the Fed’s preferred measure, far above its 2% target. He will deliver the testimony to the House Financial Services Committee later Tuesday morning, and then face questions from members of the committee.The renewal of the Iran war has caused oil prices to climb again after they had fallen back to nearly their prewar level. Gas prices had fallen about 20% from their peak but have also increased in the past week and are still about 35% higher than they were when the U.S. attacked Iran Feb. 28.
Warsh says Fed has 'no tolerance' for high inflation but provides no hints on next move
Federal Reserve Chair Kevin Warsh pledged to make high inflation “a thing of the past” in his first congressional testimony Tuesday, yet provided no signal about the central bank’s next steps.












