Kevin Warsh has been running the Federal Reserve for roughly three months, and he’s already made one thing abundantly clear: he’s not interested in declaring victory over inflation anytime soon.
65 months and counting
Inflation has now exceeded the Fed’s 2% target for more than 65 consecutive months, a streak that stretches back to 2021. The persistence of above-target price growth has become the defining challenge of Warsh’s early tenure, and he’s framing it in starkly moral terms.
During congressional testimony on July 14, Warsh declared a “no tolerance” policy for elevated inflation, characterizing the current price environment not as an accident of circumstance but as a “choice” that requires deliberate reversal.
At an earlier forum on July 1, Warsh acknowledged that some inflation risks had begun to ease. But he was quick to add that the Fed would not accept readings above 2%, effectively shutting down any speculation that the central bank might quietly raise its comfort zone.
