Kevin Warsh just gave Congress his opening pitch as the 17th Federal Reserve Chairman, and the message was blunt: inflation has been running hot for over five years, and he plans to do something about it.
Testifying before the House Financial Services Committee on July 14 and the Senate Banking Committee on July 15, Warsh described 63 consecutive months of above-target inflation as an “unfair burden” on American households and businesses. He pledged what he called a “regime change” in monetary policy.
The inflation picture
June 2026 CPI came in at 3.5% year-over-year, still well above the Fed’s 2% target. There was a small win: a 0.4% monthly decline, largely driven by falling oil prices. But core inflation, which strips out volatile food and energy costs, remained stable.
Warsh took office on May 22, 2026, succeeding Jerome Powell. He stopped short of telegraphing specific interest rate moves. What he did signal was the creation of new task forces to examine inflation dynamics, productivity roadblocks, and broader economic impediments.
