Warsh Says Fed Has 'No Tolerance' for Persistent Inflation

Summary

Federal Reserve Chairman Kevin Warsh testifies that the FOMC has zero tolerance for persistent inflation and is firmly dedicated to restoring price stability, describing the current moment as a hinge point in history.

• Warsh states the Fed is at a hinge point in history and must get monetary policy right.
• The FOMC's primary objective is ensuring the American economy excels long-term.
• He chaired his first FOMC meeting a month ago and emphasizes high inflation has been a burden.
• Warsh declares the committee has no tolerance for persistently elevated inflation.
• Underlying inflation over longer time horizons is determined largely by monetary policy.
• He assures that if policy is right, the inflation surge of the last five years will be in the past.