Warsh and the Fed: What the Chairman Said About Inflation

Kevin M. Warsh testified to Congress on July 14, 2026 and he has described inflation as a main priority for the Federal Reserve. In his first semiannual testimony before the House Financial Services Committee, he said the central bank will act to restore price stability, although he avoided specific guidance on policy moves. Markets have been watching because investors want clear signals about whether the Fed will raise interest rates. Economists noted that the Fed is avoiding clear forward guidance.

The Fed's internal discussions have been described as split, with officials divided over the path of policy since inflation remained above target for several years. Fed minutes and reporting have shown that the key policy rate was about 3.6% and that the committee has 19 members, while the next Federal Open Market Committee meeting is July 28-29, 2026. Therefore, while Warsh pledged to make high inflation a thing of the past, he left open the timing and scale of any rate moves. The Fed said it will continue to monitor data on inflation and employment before acting. Markets will watch upcoming data closely.